The PS2 and XBox are more ubiquitous, in some places, than cable or satellite TV boxes. Do you think Bill Gates is going to let that little fact slide? In a conference aimed at business journalists, Gates described the new XBox as more than a gaming system—it'll be a media center. It's a PC, it sits in your living room, and it has a broadband connection. Do I smell some kind of content delivery system? Some sort of DVR functionality? Some sort of TiVo-killing, ITMS-destroying, media juggernaut?
The interesting thing is the suggestion that the 360/Xenon/Princess Pony will have an Windows Media Center Edition menu, which implies compatibility with MCE which suggests that your next PC will be MCE (at least that's the plan, surely).
Next-generation Xbox more like a media hub [Seattle Post-Intelligencer via Unmediated]