(Players can watch TV through their Xbox-and receive notifications when friends want to play games-or watch TV in a picture-in-picture-like window as they play a game.) Many fans have speculated about the possibility of this since the Xbox One’s introduction showcased the system’s ability to act as a pass-through for cable and satellite boxes.

The ability to record television shows to the console is unique to Microsoft’s device. That window gave the 360 a big sales boost-and made it clear that the system was made for more than games. The company’s last generation system-the Xbox 360-was the first console to include Netflix streaming, offering the service for a full year before Sony (SNE) and Nintendo (NTDOY) made it available. That’s not unfamiliar territory for Microsoft (MSFT).

“It seems to me that Microsoft is taking one more step into turning the Xbox into a truly versatile entertainment device rather than just a game platform.”

“Microsoft has slowly but surely been improving the value proposition on Xbox One-and this is one more thing that will attract the attention of people who are looking into upgrading,” says John Taylor, managing director of Arcadia Investment Corp. It’s a move that could make the Xbox One, which has fallen short of the sales of Sony’s PlayStation 4, more desirable to people thinking of getting rid of their older game systems-and could make it more interesting to people who weren’t thinking of getting a game system at all. Microsoft, at a press conference preceding the 2015 GamesCom conference in Cologne, Germany, announced that it will add subscription-free DVR functionality to its video game system in 2016.

Xbox 360 dvr