All-in-ones have been tried in the past. CD-i was a flop. N-gage didn't work. People see devices in terms of their primary purpose. Nobody plays music with their DVD player, even if it plays CDs. They have a separate stereo system, although they might feed into the same sound system. An all-in-one box was never the future.
Video games is a very branded market, whereas set-top boxes are a generic market. Tivo was the closest thing, but even there people are more than willing to settle for an off-brand DVR. The two industries have always been too incompatible, and need two completely different kinds of people marketing them.








