Balmer said that there was a larger agenda for the Xbox than just games, but he gave no details.
Microsoft’s original concept was an all-in-one device that could handle games, interactive TV and computer functions, but that concept was slapped down by software makers, Ballmer told analysts at an investment conference in Phoenix, Arizona.
Microsoft has touted the Xbox's impressive hardware and gaming abilities, but executives have kept quiet about possible future uses for the device, which with its 8-gigabyte hard drive and built-in port for fast Internet connections could be used to pipe music, movies and other content into living rooms.