Microsoft is tipped to use the EA gaming show to launch a new Xbox 720, the news comes hours after the Company is believed to have acquired a US start-up firm id8 Group R2 Studios that specialises in home-media, entertainment and automaton technology spanning heating lighting and security.

Insiders claim that the new Xbox 720 will deliver new Kinect-style voice and motion control the device will have a new graphics processor and built in and a Blu-ray player.

According to Reuters the automation company Microsoft is believed to have acquired recently, launched an Android application which can control AV, lighting, thermostats and security systems in a home by turning an Android smartphone into a touch-panel control system.

Citing a source “familiar with the situation,” Microsoft has reportedly bought the start up for an undisclosed amount. The firm has also apparently purchase a number of patents from id8 that relate to controlling electronic devices and device interfaces.

Media reports late last year suggested that the start-up was in talks with firms including Microsoft, Google and Apple about potential purchases of the Silicon Valley-based company. However, details remained sketchy, and the talks were considered preliminary.