"Microsoft, while it has tested cloud gaming, is putting greater emphasis on software that allows the Xbox to interact with mobile devices like Apple's iPad. The company is also planning to create new interactive TV content to be played on its consoles, after opening up a new production studio in Southern California.
"We're looking at a very robust content production schedule," said Nancy Tellem, head of the new Xbox studio, at the recent "D: Dive Into Media" conference run by All Things D which, like The Wall Street Journal, is owned by News Corp NWSA +0.21%. She added the Xbox may be known as a game console, but Microsoft wants it to be much more. "Our focus is to transition it to an entertainment device."
So MS is going to start a TV studio to create content for the next Xbox?
Edit: Also, not rumour but straight from a company source.
Edit2: For teh link hounds.