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Xbox is an over-priced TV-box for non-gamers. This means that it will never revolutionize TV. Unless the hardware is useful for non-gaming. Kinect doesn't mean anything. The company behind it will start selling it's own on a license basis (Primesense).

It makes sense from a gamers perspective but it really isn't. Google and Samsung are probably the biggest contenders. Even they are havin a hardtime due to a defensive strategy of cable companys. It will take atleast 10 years if not more before true internet TV takes off.

Gaming company's will have a real shot when they deliver a cheap 100 dollar box with high-end stream-based gaming including non gaming apps.