Rumors are floating around about a new Kinect HD, or a Kinect-based set top box for 2012. Slash Gear, who created the prototype image above, mentioned this could be the beginning for Xbox TV and the Kinect HD might offer streaming multimedia content with a voice and motion controlled UI. "Xbox, watch G4!"
The device currently has a few codenames including the "Live Xbox", "Kinect Box" and "Kinect HD". The Daily thinks that the set top box will basically resemble what the current Kinect looks like now, with a larger base to accommodate power, HDMI, and USB ports. As of now there's no word as to whether the device would integrate WiFi or if it would have to be wired. My guess is in this day and age it would use wireless technology.
According to anonymous sources, Microsoft is aiming for a sub-$200 price tag in the region of about $150. Other rumors have mentioned Microsoft is looking around for an ex-TV executive who could help them create their own shows and content. But since Microsoft just announced their deal with Fox, XFinity, and Comcast to offer many networks and original content on Xbox Live, it seems like a good match.