would flop so bad.

Its not gonna happen most people still don't have fast enough internet access to make a cloud based main stream video game console.

It's going to be a console. I cannot see it selling well at all if it's a television. Microsoft just wouldn't do that.

Once Microsoft starts offering cloud streaming games, I can't see anything stopping them from offering it as an 'app' for the TV manufacturer's, exactly the same as Gaikai.

There's also rumours that MS will have a cheap sku akin to the media hub prices that offers all the media services and cloud streaming games.

They don't seem to be losing money on their systems and they are more than adding to it with their various online services.

Maybe this time the PS4 will actually be a grill.

I think that's stupid. Making the next console a TV would be completely retarded. First of all, people are not loaded with cash. I'm perfectly happy with my TV and I don't want to buy a whole new tv just to play the next xbox. I would end up spending money on something I don't even want. Also, they would have to build many different models because some people want really big TVs, but of course not everyone can afford that. The key to a successful console is the price. There is no way MS could sell a TV/Xbox at a price most people can afford.

If companies want to make things really simple for us, they need to lessen the amount of wires we deal with. If future products can work like how usb powered devices with computers , than I think that's simple enough for everyone. I'm sure everyone can at least figure out how to plug in one wire.

For $130, Best Buy will come to your house and connect your PS3. That's the argument for why video game consoles are now more complex than ever? Best Buy will come to your house and do lots of things for $130. That doesn't change the fact that it's just as easy now as it was twenty years ago to connect a console. People have either gotten dumber or people that have never played a console before are intimidated by the prospect of hooking one up (and Darwinism will deal with those people soon enough.).

A TV. Seriously? Then, what size? What refresh rate? LCD, LED, 3D, OLED? For fuck's sake....for the sake of one single fuck, use your head!!

"Maybe the Xbox 720 will be just another console - or as Microsoft likes to stress, an "entertainment hub" Maybe it will be a living horse. "We just don't know." God, I hate it when these speculators get quoted and taken seriously.

I was referring to systems at or near launch ...

While we can argue over the exact numbers, it was rumoured that Microsoft was losing over $100 for every XBox 360 sold to keep the price at $400. If Microsoft changed their strategy to launching a system that they could break even selling for $300 or $400, and then took the money they would be losing selling more exppensive hardware and directed it towards getting systems into homes in other ways they could "sell" more systems with the same losses on hardware.

The general approach would be to sell them the "XBox 720" to them for half price if they essentially gave it away for free in a bundle. Best Buy (for example) could offer 50 inch HDTV bundles with the "XBox 720" for a competitive rate and (possibly) move millions of units for Microsoft; or cable companies could convince people to switch to a cable, internet and TV bundle to get a free "XBox 720".

Personally, I think it is a very solid strategy because of how disruptive it would be in the market. Ideally, I think it would be best for Nintendo with the Wii U being that they could use it to get an unprecidented lead in the market in their first year (imagine a system that was in 25 Million homes before their competition launched), but it would also work for any of the console manufacturers.

"according to David Perry, head of cloud gaming company Gaikai"

And there you have it.  He has a vested interest in this happening, so he's particularly biased.

As others have stated, no.  Just, no.  The TV industry is struggling a bit, as there are too many products and too few purchasing consumers.  People don't WANT to replace their TV's unless there is a very good reason.  This won't be near good enough because people already have cable/satellite boxes and now game consoles that already do these things.  No.