A new report claims that Microsoft's next-gen Xbox (aka Project Ten, Loop, Next and 720) will feature "tight integration" with Windows 8 when it hits store shelves in late 2012.
"They are going the Apple route where they want this thing to integrate very tightly with Windows 8 and Windows Phone, which is a problem with the current Xbox."
According to Thurrott, the new Xbox will include "embedded Microsoft Silverlight," which is likely to run the Xbox Live TV platform.
The latest rumor comes just days after MS Nerd reported the next-gen Xbox is based on a modded Windows 9 core that uses a Zune HD-like hardware platform.
The site describes the platform as "a 'main' processor with multiple dedicated assistive cores for graphics, AI, physics, sound, networking, encryption and sensors."
Interestingly enough, MS Nerd also claims the console - reportedly designed by Microsoft and two (unnamed) partners - is based on ARM architecture.
Hopefully, the new chip will will help Microsoft avoid overheating issues and the infamous red ring of death (RROD) associated with IBM's Power PC chip used in the Xbox 360.