Not according to The Verge

Microsoft is building an Xbox set-top box. Multiple sources familiar with Redmond's plans have confirmed to The Verge that the company plans to introduce a low-cost alternative to its Xbox console, designed to provide access to core entertainment services. The move will allow Microsoft to further increase its presence in the living room, providing consumers with a choice between a set-top box or a full next-generation Xbox console.

We're told that the set-top box is part of a two-SKU strategy for Microsoft's next-generation of Xbox hardware that will be unveiled in 2013, with a release date ahead of the holiday shopping season. 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. Although hardware specifications aren't fully locked down, 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.

Microsoft's Xbox set-top box work is said to be part of a broader effort to ensure its core architecture for the next-generation Xbox is scalable enough to be put together to run on a number of devices. We understand that the company could opt to combine its core system for the next Xbox with a phone stack to deliver a phone capable of running a full version of Microsoft's Xbox Live services. It has also investigated providing this functionality to TV OEMs, who could include the core services as part of a licensed Xbox television set.

http://www.theverge.com/2012/11/21/3674802/xbox-tv-set-top-box-casual-gaming-streaming-2013

Doesn't say anything about Kinect in that article.

this is true, kinect in each system will probably cost microsft 60$ more each system, thats why they chose 8GB ddr3 which sucks compared sony 4gb of GGDR5, they chose 8gb ddr3 for the os and kinect, all in all, its seems like the ps4 will  be 2x more powerful,and at the same price, making it an easy choice for me nextgen.

@NinjaBlade
No, at these specs PS4 IS NOT 2x more powerful than NextBox.

4gb GGDR5 completly destroys 8gb ddr3m it also suppose to have a better gpu.

You're right bud we would need to get exact GPU specs for Durango/XBoxNext to get a better picture of this though.

thats true but its pretty much confirmed durango  going with ddr3 and that evidence is pretty damning by itself, add the kinect and os rumors and its pretty clear what microft and sony are going for

sony= powerful hardware that won't break the bank

microsoft= moderately powerful hardware, with them focusing on the os and kinect, sacrifices were made on the hardware.

Straight from a Ubisofts developers mouth

"In my opinion both machines will be very close, with some details in favor for each one, but I think we will have a ps360 situation again with 2 machines very close.

And some details in the articles are simply wrong"

http://www.neogaf.com/forum/showpost.php?p=46551080&postcount=274

he went on to say that some very minor details are wrong, basically confirming the specs, another insider says named agieses works for polygon, going 8gb ddr3 is retarded move by microsoft, looking into the rumors there is no doubt in my mind ps4 will be more powerful because microsoft made scarifices for kinect and os.

Well, no. More is better, even if less is faster. And I am not a tech-guy, but that is what all the people told me way before these rumors start to pop up.
Anyway, rumors are rumors. This one is already busted by UbiSoft, which is by far the most credible source we have heard in a long time. Way better than HipHopGamer.

The funniest part in this thread was the guy calling M.U.G.E.N. a MS fanboy for doubting a rumor. That was priceless.

IMO the most credible source so far is the MS documents that were leaked some time ago that said they tried to make the XBox 3 about 6-8 times more powerful than the 360, which is fine for me. I just played Halo 4 and it looks just great to me, so giving devs 6-8 times more power to play with should be more than enough to create great gaming experiences.