Intel US sources, said that Microsoft is set to enter the TV market in the second quarter of 2016 with a TV that can run Microsoft games currently run on an Xbox gaming console.
At CES 2016, SmartHouse was told that Microsoft was working a platform that allowed consumers to download games from the Microsoft store direct to a TV, now we can reveal that Microsoft is looking to taken on Android and Apple TV as well as Microsoft's Tizen.
The new Intel processor, combined with the refresh rate of the TV display screen which has been developed from the ground up is said to deliver a gaming experience "superior" to current gaming consoles.
The new TV range which will be available in multiple sizes.
Microsoft will supply the OS, Intel the processor with the Japanese TV Company responsible for global distribution, at this stage it is not known which Japanese TV Company is supplying the panels.
The new TV will be sold in Microsoft stores and at retailers currently selling Microsoft Xbox and Surface tablets said sources.
SmartHouse understands that Microsoft will initially launch the new TV into the Asia Pacific market.
At this stage it is not known in which AP market the new Microsoft TV will be revealed, some observers are tipping Japan, China or Australia.
According to sources Microsoft is keen to build traffic to their Microsoft Store with gaming seen as a category that can deliver sales.
Microsoft has told developers at Intel that they are keen to integrate the OS so that TV users can also access Skype have access to two cameras, dual microphones, speakers, integrated Wi-Fi and generally everything else you'd expect to find in a computer.
"Android and the Google Play Store has little in the way of games as a result Microsoft believes that by delivering a TV with a new Microsoft OS they can take on Apple TV, LG with their Web OS, Samsung with their Tizen OS and Panasonic who recently launch TV's with a Firefox OS" the Intel executive said.
ChannelNews understands that Microsoft has also spoken to a major Chinese TV Company about the integration of their OS into a 4K duel processor TV.
Currently Intel has a 11.5cm tall,Compute Sticks that comes with the Windows 10 operating system, an Intel Atom or Core-M processor, wireless connectivity, the same graphics as a full-size computer, 32 to 64 GB of storage, and more. There's even a tiny cooling fan, according to Intel. The exact configuration of what you get depends on the model you choose.
What that means is that when you plug the Compute Stick into an HDMI TV, it turns the television into a fully-functioning computer. Or you can choose to plug it into a monitor, and turn the monitor into a computer.
ChannelNews has been told that this technology could be built into the new TV's with a bigger processor for gaming graphics.