It was announced today that the set top box will retail for $99, is HD, has WiFi, will eventually have surround sound and is launching with 23 titles.
It's heavily hinted it will also stream movies and other content.
If you haven't heard about the console/service, it's basically gaming in the cloud. They have massive farms of servers stuffed full of GPU's that render each frame of the game you're playing and ship it to you over the intertubes. This removes the need to do any local processing so the unit only uses 6 watts under full load.
The games are either bought or rented.
http://www.engadget.com/2010/11/18/onli ... -hands-on/
I have a friend who knows several developers and executives there (and I'm visiting him for Thanksgiving so I get a pre-release hands on test).
Pretty cool stuff but they're coming out against Sony, Microsoft and Nintendo....not an easy thing to do, but possibly the future of console gaming.