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Microsoft is reportedly preparing to launch an Xbox digital set-top box focused on casual gaming TV and streaming video.The new device set to be launched early in 2013 will sit alongside the Companies highly successful Xbox 360 console according to the Verge.

“The device will run on the core components of Windows 8 and support casual gaming titles rather than full Xbox games typically found on a dedicated console,” The Verge says. It will offer near-instant access to TV and entertainment services.

Microsoft is also looking at using the technology in other products, including a phone able to run Xbox Live.

According to the report, Xbox TV will serve as half of Microsoft’s two system strategy for its next generation of game consoles.

The device is seen as a way for Microsoft to engage with consumers who won’t necessarily buy a gaming console which are seen as intimidating to casual users.

Xbox TV could also be used as a test case for scaling Xbox Live and Cloud TV services to a wider range of hardware, opening new possibilities for Windows 8 PCs, Surface and Windows Phone 8 devices.

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