A new report suggests that Microsoft's next generation Xbox will come in two very different models.

The first is the console we're all expecting, providing true next-generation gaming experiences, while the other will be a more affordable unit aimed at the casual market. The latter is said to use Windows 8 as the basis of its operating system, and won't be able to run the latest triple-A titles, but will support downloadable casual games from Xbox Live.So it will function more like a set-top box, or an Apple TV, allowing a greater number of consumers to experience the console's growing range of entertainment apps. Apparently, the next-gen Xbox will be an 'always on' device that starts up almost instantly, letting you resume your game with little downtime.This latest report comes from The Verge , which cites "multiple sources familiar with Redmond's plans". (Redmond, if you were wondering, is the location of Microsoft's head quarters.) It also claims that this twin SKU approach is part of a larger Microsoft strategy to ensure that its core Xbox software is 'scalable' to run on a variety of devices. There's even talk of making it so that a phone could be capable of delivering a full Xbox Live experience. It has also looked into including licensing core Xbox functionality into television sets.It's believed that both devices will be announced sometime in 2013 and made available before the end of the year.

Daniel is IGN's UK Staff Writer, and he only comes in one SKU. You can be part of the world's worst cult by following him on IGN and Twitter