So now we float the idea of 2 Xbox consoles for the next generation.

So, here’s an interesting thought I’ve seen: Take the normal Xbox 360 and smash it down to the size of Apple TV. Sounds like a keen idea, right? You take all of the available services and put them into a nice little set top box that sits on the television. It’s a great idea and one that I’m firmly behind. Then you get those who say this: “If you want to play games, then you could have the regular Xbox 360 console.”

Except I want to throw a curveball at that statement: Why can’t the set top Xbox play games, too? Surely you’ve heard of Games on Demand and XBLA?

While the portable box couldn’t play optical discs, what’s stopping a person from purchasing games through the online marketplaces? Hell, what’s stopping someone from purchasing music from a marketplace? Or Video? If we then incorporate cloud saves and Skydrive, a set-top version of the Xbox 360 could be just as useful for both gamers and entertainment-hounds as a full-fledged console.

So why would one want to have a full-fledged console? Games on Demand doesn’t do the blockbuster releases (or any releases, for that matter) on release day. You’d still have to wait a good amount of time for that Triple A title to get to the Games on Demand marketplace. If you can wait that long then a set-top 360 is ideal. A console that plays discs and top titles that release on discs would still make a full console necessary for the living room.

Of course, I’m becoming more about the all-digital way of life, but we should stop and think that there’s really nothing (gaming or otherwise) that an Apple TV style Xbox couldn’t do with the exception of new releases. So now you can have a complete Xbox experience on something the size of a hockey puck.

Thoughts like this make the future of Xbox very interesting to ponder, doesn’t it?