Starting Friday, Xbox 360 owners who watch TV through AT&T U-Verse will be able to consolidate their “set-top boxes” into one, because the Xbox 360 will act as a TV receiver and DVR.

AT&T and Microsoft announced the setup will take a $99 kit and a service visit. But the functionality will eliminate the box rental fee, so the star-up cost will be offset eventually.

While we’re on the top of “set-top boxes,” now that more than half of homes are equipped with wafer-thing HDTVs that can’t hold a pair of dice — much less a bulky cable box — can we get rid of the term?

AT&T Extends TV Watching to More Devices with Launch of U-verse TV on Xbox 360 [AT&T]

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