As each year goes by, all the gadgets and gizmos get smaller and smaller. And more and more start to become obsolete. You would never think that the cable box could disappear. Well, think again.

The wonderful folks over at Microsoft has showed us that the process of elimination has begun. With the most recent update, the Xbox 360 will now be able to do more than just play video games, watching movies using  Netflix. Besides Hulu Plus, there will be more selections of what you can watch now on your system.  MSNBC’s The Today Show and Epix, cable movie channel, are a couple of the first channels to be added. More are expected to join, such as Youtube, DailyMotion, and HBO GO (coming sometime in 2012) are just some the the channels coming.

Of course, not all are free. You need an Xbox Live Gold membership to be able to use the new features, which is understandable. That is the easy part. There are, and will be some channels that you will need  separate  service accounts to use, such as Netflix and HBO GO. Now if you think you can get rid of you cable provider, hold on for now.Verizon FIOS and Comcast Xfinity will be bringing their services to Xbox, but not until later. Verizon will be using the gaming system as a limited set top box, which will start later this month. Comcast is hoping to have their system ready by early 2012. They will be offering ther “On-Demand” services, but not live television.

The other part of this update is for the Kinect. With advanced terchnology now at hand, you will now have the ability to search through your xbox using voice activation. The system uses Bing search engine to find what you are looking for. With everything squeezing into our Xbox 360, certain products like Boxee and Google TV might have some good competition.