The Daily is reporting that Microsoft is currently working on a Kinect-enabled set top box that would work without the Xbox. It would be a new product separate from the Xbox Kinect and offer streaming media content like Apple TV with the benefit of using Kinect's stellar voice and motion UI.
According to The Daily's sources, the new Kinect set top box will cost around $US150 (which is actually what the real Kinect retails for) and be released before the next Xbox. It's described as a lower profile version of the Kinect with a larger base to fit the HDMI and USB ports. If The Daily is right, this new version of Kinect would basically be Xbox without the games.
That sounds really interesting to me because the Xbox has a great and growing list of content partners and when combined with the Kinect's superior UI, I'm not sure you could find a better set top box for your TV. [The Daily]