Fully digital versions of PS4/Xbone will happen sooner or later. Digital sales took off this gen.

This rumour has been going around for a few years now... I think some Analysts keep bringing it up because they feel its a certainty and want to then claim they have sources... hah.

The TV market is crowded, not sure how anyone can go up against Apple/Amazon/Google right now, it was one of my biggest problems with MS's console launch where they were going on about this $400 device that could do TV, when you could buy a cheap stick to do the same thing.

Also as a consumer who has a Sony smart TV, an Apple TV device, console (netflix/amazon)... I'm not that impressed with most of the services offering half assed products/libraries. I don't need or want another store front selling me another limited range of products.

In fact this isn't a complaint of MS but of all TV services etc, they are really quite poor right now... which stops me from buying content. I wanted to watch a stupid crappy tv show, it was £22 to buy the series off apple, I actually could buy S1/S2 for £10 on DVD, which I then just converted and put on my Apple TV... they didnt even have S3/S4 on their service... absolutely rubbish.

We don't need another TV service, what we need is a TV service that has good content AND reasonable prices.

I said this before on the Xbox Republic thread. Microsoft and Sony should've released a $199 disc-less edition of their console last year. They might lose at the beginning but they will get a lot of money from the digital games. I think they get ~30% of the price of the game. If that is true, they get $18 per $60 game.

Or WElostSoft.    

Wouldn't the fact you asked number 3 question and included Sony answer your inquiry if MS should do this?

Unless the PStv all the sudden started selling like hot cakes and I'm just unaware of it  

Apple TV will be 9 years old in 9 days and has shipped 25 million that's how tiny the set top box/micro console market is.  There is a reason Apple calls it a hobby since it's just the circuit board from an ipod in a plastic case it's cheap as chips to make.

So they want to release a windows phone tv box and call it an Xbox?

My reaction: why the fuck would anyone who's not insane pay $150-$200 for a device capable of only playing games like Game Dev Tycoon, GTA San Andreas, Lara Croft GO en Halo: Spartan Assault (those are some of the more noteworthy games I could find in the Windows Game Store).
A digital only console at a lower price (at the very least $100 cheaper) would be good for people who only buy digital, but then Microsoft would have to be willing to take the upfront loss on a console sale and they'd have to make sure that they'd get back those losses via digital royalties.

The fact that the OP followed up this story asking if Sony should follow and do it as well should answer the question if MS should do this. I mean if no one remembers Sony did this with PStv what on earth makes this a good idea for MS?

ps tv is shit.
the streaming lags
you don't have the "need to have" apps

i bought a ps tv for 15 euro and even regret that
the problem for the ps tv is not the category. it's the device itself. i just sucks