Saw this over on NeoGaf

Sources familiar with the Microsoft console tell Polygon that Microsoft, while already aware of Sony's launch timing, plans to hold its own announcement this spring, months after Sony's unveiling. A variety of form-factors for Microsoft's new console, we're told, are already being focus tested.

Both next generation consoles will focus on expanding their reach beyond core gaming to include more entertainment and social aspects, according to our sources. That could include, we're told, a subsidized version of the Xbox that serves as both a gaming platform and a cable box, though agreements with cable companies have yet to be finalized. Last year, The Verge reported that Microsoft was also working on a subsidized low-cost alternative to its next-gen console.

http://www.polygon.com/2013/2/1/3940622/ps4-next-xbox-launch-date

Maybe a weak-cheaper console version and a more powerful one?

I think Microsoft has seen success with a subsidized console and will likely continue to offer one, if not many options, with the next generation.

All versions will include Kinect 2.

Don't be surprised if the media/non-gamer centric version is seen as a set-top box for cable/satellite operators. Motorola previously used Microsoft for set-top boxes, however considering Microsoft and Motorola's recent legal spat and a slate of patents, it seems Microsoft may be getting into direct competition on the STB front.

The STB version would have the same power as the full console, but would not include controllers, an optical disc drive, or as much memory. In addition, it would include an ATSC tuner/satellite receiver.

Ahh yes, I see

Hmmm well I hope it isn't true I don't want them concentrating on cable/tv services and still not getting out games for their core audience. If they can do both at the same time then great more power to MS but I have a feeling this is going to end badly for them. (And I love Xbox but I'm not loyal to the Xbox brand I'm more than willing to switch over to PS4 and Wii U)

Probably something like the Core and Premium Editions
The new "Core" Editions will have limitations in terms of services/Apps and restrictions in some things while the "Premium" will be open to everything.
Will be all connected to the "TV Apps" and stuff cause as we all know the 360 is already more used for that stuff than gaming as Microsoft said last year.
They will find an option for those non gamers to surely switch over to the NextBox even if its only a cheaper version of the real thing aka a "Mediabox" focused on those parts.

Exciting stuff. Looking foward to see what MS can bring to the table.