An Xbox TV, a console piggy-backing on your cable box, DVR functionality, streaming gaming, and augmented reality have all been topics of Microsoft development for the next-gen “Xbox 720“, sources claim, though how much of the prototype tech will make it to the eventual hardware is still unclear. Microsoft has been working on multiple possibilities for embedding the new Xbox further into the living room, multiple insiders whispered to the WSJ, as it attempts to challenge not only Sony’s PlayStation 4 but the rising star of smartphone and tablet gaming. Still, wariness about potentially frustrating gamers with laggy play, or content and entertainment partners, has apparently forced Microsoft to temper its console ambitions.

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