Xbox will incorporate Kinect in its connected-TV solution.
According to recent rumors, Microsoft will hold an Xbox 720 unveiling on May 21. This week brings a little more information on what we might see at that event. According to the Verge, Microsoft is gearing up to take on the likes of Google TV with a feature that will allow the console to take over a TV and set-top box.
The Verge cites unnamed sources that say Microsoft's newest Xbox will use an HDMI connection to pass a cable box signal through to the Xbox. This will mean a Microsoft UI on top of an existing TV channel or set-top box. Kinect will be able to sense the viewers eye movement and pause the content if they turn away from the screen. All told, the Verge's sources reckon Microsoft's solution, coupled with its partnerships with content providers, will take things 'a step further' than Google TV.
Other rumors regarding the Xbox 720 include reports of an '"Always On, Always Connected' approach. This would mean the Xbox would require an internet connection to function. Games will also apparently be installed to a HDD as opposed to played off of an optical disc. As such, there's speculation that this feature would block pre-owned games.