http://www.theverge.com/2013/4/10/4208970/next-xbox-tv-entertainment-plans

"Multiple sources familiar with the company's Xbox plans have revealed to The Verge that Microsoft will introduce a feature that lets its next-generation console take over a TV and set-top box in a similar way to Google TV. We understand that the next Xbox will require an online connection to use the entertainment services, allowing them to be always-on for streaming and access to TV signals.

Very similar to Google TV, but with Xbox gaming
The functionality will work by taking a cable box signal and passing it through to the Xbox via HDMI, allowing Microsoft's console to overlay a UI and features on top of an existing TV channel or set-top box. We're told that this is a key part of the next-generation Xbox and that it will go a step further than Google's TV implementation thanks to Microsoft's partnerships with content providers."