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hinch said:

Xbox mini as a set top box for people who want to stream stuff and play some games on the side and the Next box as a more gaming orientated platform.

Set top boxes need memory.. Lot's of memory. Every set top box in shops here has at least a 500G harddrive and/or a writeable medium.
So basically MS is going to build something that was talked here 1-2 years ago. It was a thread about Sony patenting something along the line of "A hw device that attaches to a console and adds sw compatibility". What makes people think that MS suddenly invented the wheel? I'm pretty sure Sony could build such an addon for the PS4 that contains a PS3 SoC, it they wanted...