Multiple sources have told The Verge that the Xbox 720 will include a feature that allows the next-generation platform to take over a user's TV and set-top box in much the same way that Google TV operates.
The site's sources also suggest the platform will require an online connection to use various entertainment services, as well as to tap into TV signals. Past reports suggest the next Xbox will not only require an Internet connection for entertainment services, but also to load games.
The sources said this functionality is a "key part" of the Xbox 720 and that the service will feature a greater variety of offerings than Google TV thanks to Microsoft's alliances with a number of content providers.
The sources also revealed new information about the rumored next-generation Kinect unit that will ship alongside the Xbox 720. This new camera is believed to be capable of detecting multiple users simultaneously and can even track eye movement to pause content when a user turns their head away from a TV.
Reached for comment, a Microsoft representative told GameSpot, "We do not comment on rumors or speculation. We are always thinking about what is next for our platform, but we don't have anything further to share at this time."
Earlier this week, Microsoft announced the sale of its Mediaroom IPTV platform to Ericsson for an undisclosed sum. As part of this deal, Microsoft said that moving forward it would dedicate 100 percent of its TV resources to Xbox.
Microsoft is believed to announced its next-generation platform on May 21.