Info uncovered by The Verge about a new Xbox 720 (Durango) feature might explain why Microsoft’s upcoming console would require constant internet connection.
According to The Verge, the next Xbox will be able to take over a TV and set-top box in a similar way to Google TV. This is achieved by connecting the cable box to the Xbox using HDMI cable, allowing Microsoft’s console to overlay its UI and features on top of the TV channel or set-top box video.
Needless to say, Kinect 2.0 will play a vital role in this mode. In addition to using gestures to control the TV, Kinect 2.0 will also be used to allow "smarter behavior" such as pausing the video when it detects that your eyes are no longer looking at the screen.
The Verge also revealed that Microsoft has entered partnerships with content providers in order to ensure it is able to deliver a better experience than its competitors, namely Google. It is understood that the console will require internet connection for video streaming and for the additional features offered in cooperation with content providers.
As expected, Microsoft refused to confirm or deny this info.