In recent times, Microsoft has been focusing on turning the Xbox 360 from a gaming console to a general entertainment device. According to The Verge, there are rumours that the company is working on an Xbox set-top box.

The set-top box would offer the entertainment functions of the regular console, but without the ability to play triple-A titles such as Assassin's Creed or Dishonored. This would make the device an alternative for people who generally don't game much, but find the Netflix and other services of the Xbox 360 convenient.

The Xbox 360 seems to be on its way out

Could become a set-top box

According to The Verge, the Xbox 360 TV will run on the core components of Windows 8. The system will also support casual gaming titles, presumably titles from Xbox Live Arcade.

Microsoft has released a statement about the rumours, “Xbox 360 has found new ways to extend the console lifecycle by introducing controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention.”

Microsoft has released other features for the console that focus on the company's goals of selling the machine as an entertainment device rather than just a gaming system. Earlier this month, Microsoft had announced that it is partnering with The Karaoke Channel to bring Karaoke to the Xbox 360.

The app is said to offer more than 8,000 tracks, with genres such as pop, rock, country, and R&B. The Karaoke Channel claims that the app's major advantage over other music games is that you don't have to store the music on your Xbox 360. Instead, you could simply stream whatever song you wish to sing along to.

Available on Xbox Live in time for the holidays, Karaoke for the Xbox 360 will have a selection of free sample songs that will change frequently. Full access to the entire library is available for blocks of two, six, and 24 hours by redeeming Microsoft Points. Songs are added to the library on a regular basis as they are produced and licensed, giving everyone a great reason to launch The Karaoke Channel on Xbox Live to discover new songs to sing.

Back in October, Microsoft had released its yearly update for the Xbox 360 dashboard. Perhaps the biggest feature in the new dashboard update for the Xbox 360 other than Internet Explorer is the inclusion of Xbox Music. Microsoft had officially taken the wraps off its latest attempt at a music service a day before the update was released.

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