I'm starting to get convinced that Microsoft will employ a two SKU approach. Here's what has been reported:
http://www.theverge.com/2012/11/21/3674802/xbox-tv-set-top-box-casual-gaming-streaming-2013
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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."
Now, this is TheVerge we're talking about. They couldn't have possibly pulled that out of their rear. IGN then picked up the story and further added:
http://www.ign.com/articles/2012/11/22/report-two-versions-of-the-next-xbox
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The first is the console we're all expecting, providing true next-generation gaming experiences, while the other will be a more affordable unit aimed at the casual market. The latter is said to use Windows 8 as the basis of its operating system, and won't be able to run the latest triple-A titles"
Then we get conflicting reports from different sources, one saying Durango is more powerful than Orbis, and the other saying the opposite. If the two SKU strategy is right, could they have both been correct? According to this:
http://semiaccurate.com/forums/showpost.php?p=176056&postcount=324 the VGleaks block diagram is for the cheaper Xbox. With the more powerful one containing what they call an extra "app block" with one or two extra SOC's.
Then we get the latest Windows Weekly Podcast where at about 1:21 it is said:
Leo: So your advise to me Paul, 'cause I'm, I gotta hole in my eh.. media center where my Xbox used to be. I gotta Playstation 3, I'm thinking I was going to put a Steambox there but maybe your advice 'wait see', there might be something else...
Paul: We already know thru previous eh.. reports that their going to be multiple devices for example, we know that uhm... what I'm saying is... one of them... might fit nicely there...
Leo: Alrighty!