Cloud gaming directly through televisions without a set top box is already a reality and will only become more common as time goes on. Because of this, Gaikai founder David Perry thinks that Microsoft will have to make their own Xbox television.

“Digital TVs are including all of that media stuff,” he said. “I think the mistake that the console companies are making is not a mistake of their choice – it’s the evolution they have to go through,” said Perry. “Once the other media hubs can have games – and I don’t mean Checkers, but things like Call of Duty – the public will get confused. With that in mind, who is able to make a TV Sony is already making them, so it will have to take all that stuff into its TVs.”

“So: my prediction is that Microsoft will have to make a TV,” Perry added. “What choice do they have There have been lots of reports that Apple has bought out a large LCD panel-making company. It’s pretty obvious that they’re on the trail too.”

Source: CVG {link no longer active}