• by Wayne Friedman , Staff Writer, July 7, 2026

The future of TV attached "set-top boxes" has been in transition for many years. But for those gaming-centric manufacturers -- where units can access and control TV functions -- the situation is a bit more urgent.

Essentially, direct digital-access internet TV systems have made the whole business of set-top boxes irrelevant. We have seen that early on with the likes of Sling TV, Hulu Live + TV, DirecTV, YouTube TV, among others.

Now it’s even easier when it comes to not needing separate boxes for smart TV brands’ operating systems -- Samsung, Vizio, LG, Roku, Amazon and others.

Gaming console makers have been moving more functions -- but not entirely -- to the cloud. This even includes physical media game discs, which is something Sony will stop manufacturing by 2028.

Microsoft’s Xbox is also changing -- internally at first. It is laying off 3,200 mid-level management executives and is testing a "disc-to-digital" system.

A complete virtual transition? Not yet. Not when home gaming controllers have been a key piece of equipment attached to those set-top boxes.

That said, for casual users, some gaming makers are allowing them to access apps on a smart TV OS or a smartphone.

This comes as gaming box manufacturers have been losing money on physical console equipment for some time.

The transition will not be easy. Equipment manufacturers are designing software to allow gamers to keep their old equipment and discs, which they might really like.

So the good news for Xbox and Sony PlayStation users is that they will just continue to use new apps.

But for those gaming units themselves, it’s another story.

According to a report, Asha Sharma, chief executive officer of Xbox, told staffers: "Our business today is not healthy.”

So is it time to look for a new game plan?