Microsoft is planning on releasing a cheaper alternative to the company’s Xbox console, according to a report from The Verge.

Several sources have reportedly said that the new hardware will take the form of a set-top box device that supports casual games rather than the full-featured console releases. It will be aimed predominately at those wanting to take advantage of Microsoft’s streaming and entertainment offerings.

Apparently the new device will launch alongside another device, believed to be the new Xbox console, some time in 2013. Hardware for the set-top box has yet to be finalised but it will “run on the core components of Windows 8” according to The Verge.

When contacted for comment Microsoft released the following statement.

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.”

Source: The Verge