Xbox 720 rumors are a dime a dozen these day, and we’ve just got another one. The Verge is reporting that Xbox 720 will be able to take over TVs and set top boxes, this according to sources familiar with Microsoft’s Xbox plans. It’ll take over them in a way that is similar to Google TV, and perhaps this is the reason why we’ve been hearing recently that the next Xbox will require an always-on internet connection to function, because it will need to be online in order to connect to entertainment services. For streaming purposes, the connection will have to be always-on.

The cable box signal will be routed through the next generation Xbox via HDMI, allowing it to overlay its features as well as a user interface on a set top box or an existing TV channel. Basic cable functionality is guaranteed at launch, while Microsoft’s partnerships with various content providers will ensure that this feature is implemented in a much better way than Google TV, as users will have access to a wide variety of content. The Kinect is said to be of importance as well, it will be used to detect eye movement as well as multiple people. This means that it will be possible for content to be automatically paused when the viewer turns his or head away from the TV. Microsoft has refrained from commenting on this report. It is rumored that the company will announce Xbox 720 in May.

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