It is apparently confirmed to The Verge by Microsoft’s head quarters Redmond, that the next generation Xbox console will ship in two distinctly different versions that will appeal to different audiences.
An alternative to the traditional gaming console, a cheaper version will be made available which will be aimed more for the casual gamer. It will operate much like a set top box, running on the core components of the Windows 8 operating system, the device will be dedicated more towards casual games rather than the Triple A full games that will be found on the traditional iteration of the next Xbox. The Verge was told this set top box will be apart of a two-SKU strategy for the next generation of Xbox hardware that will supposedly be unveiled next year, it’s been planned to be apart of a more broader effort to ensure its core architecture for the next-generation Xbox is scalable enough to be put together to run on a number of devices, so it may be possible that future technology(s) will become capably of delivering some sort of Xbox experience.
It is expected that both consoles will be revealed next year with a full release following towards the end of the year.