In a recent report, The Verge has revealed that Apple TV, Boxee and other set-top boxes will apparently have a new rival --- an Xbox branded set-top box, which is currently being readied by software giant Microsoft.

According to The Verge report, citing the information shared by unidentified sources in Redmond, WA, the development of a set-top box Xbox unit is presently underway at Microsoft; and will probably be unveiled sometime in 2013.

As per The Verge sources, the Xbox branded set-top box will be part of a two-SKU line-up which will mark the second generation of the Xbox console. To be built from ground up, the set-top box will be an instant-on unit, which will boast a high-speed performance.

With the Xbox set-top box to amalgamate casual gaming capability with conventional set-top box functions, like apps and video-on-demand services, it is being speculated that the unit will probably be developed with Kinect and SmartGlass in mind.

Despite the fact that The Verge sources could not divulge any details about the specifications or control options of the Xbox set-top box, it is believed that the box will run casual games rather than big boy console titles, and will have the `media streaming' advantage.

The reported development of the Xbox set-top box is an indication of Microsoft's strategy to expand the brand appeal of the Xbox, broadening it to cover entertainment more generally, instead of sticking with the gaming space it has encompassed since its inception.