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Report: Microsoft to Take on Google TV, Apple TV

We’ve already seen Google and Apple make the move into the living room and it seems Microsoft is determined not to miss out on the action. With the Ballmernote scheduled for later tomorrow afternoon, the gossip about what Steve will be talking about has reached an all time high. The Seattle Times’ Brier Dudley reports that Microsoft will debut a stripped down version of Windows specially tailored for set-top boxes and internet connected TVs.

"Microsoft's going to make a splash in this market with a stripped-down version of Windows tailored for set-top boxes and connected TVs," Dudley writes, before elaborating, "The software is a version of its embedded device software, overlaid with the Windows Media Center interface, with media streaming and remote-control capabilities."

Dudley claims the device will cost $200, which is $100 more expensive than Apple TV but $100 cheaper than Logitech’s Google TV set-top box, the Revue.