hmmmm where have I heard this before....

Interesting, not really interested in a setup-box myself, but interesting non the less.

So, one for TV and the other games?

No. As I said many months ago... MSony will have entertainment smart TV boxes... not "gaming consoles". They will of course still play games with all the same feature set etc, but they will have equal importance and focus on smartTV style features and so on.

Even Nintendo is doing this with its WiiU, miiverse/browser/nintendotvii and like many other applications to follow as it will take them longer to build it up as WiiU is just now at the point where MSony were with PS360.

The article said it's 2 consoles,set top box and gaming console
Maybe it doesn't make sense but don't ask me,it's from the article,so ask the writer

MS is about to change gaming forever with this. The question though is how good is it and can it replace Satelite/cable boxes?

It'll be more like two skus... aka "entertainment" and "pro" versions with slightly different layouts.

i.e. same box/same raw power, but one with a remote  or kinect1 and other with a gaming controller and kinect2... different storage options... etc.

Plans to introduce a low-cost alternative to its Xbox console
The device will run on the core components of Windows 8 and support casual gaming titles rather than full Xbox games typically found on a dedicated console.
We understand Microsoft will use a chipset to enable an "always on" device that boots quickly and resumes to provide near-instant access to TV and entertainment services.

Doesn't sound like they'll have the same power.
I'm not sure what this split will mean for so called 'hardcore' games. Another nail in the coffin for AA games? Casual games to sell on all devices and only the biggest AAA games left for the 'hardcore'?

No. One of them will be cheap, and low power. Probably won't have a disc drive either.

The point of the set-top box SKU is entertainment and media apps, not full-blown games. That's what the "Pro" version is for. I'm assuming the set-top box version won't be sold in stores, only through cable companies.

Many people don't want/need another set top box, so there is no point in including the technology inside the "pro" version. Would be stupid to force technology on people, it's always good to give people options.

@you too above me.... its a rumor article. Its not fact/confirmed.

While it does make sense to put out a $99 TV only device... to me it makes more sense to see a base enhanced model both with Kinect etc.