Microsoft may be working on new form factors for Xbox, Microsoft CEO Steve Ballmer hinted at a presentation at the University of Washington during a Q&A session. Nothing is confirmed yet, but his remarks do seem to reflect that.

Talking about hardware partners and Microsoft’s various approach to hardware and software-central strategies, Ballmer, referring to televisions, said:

“In the case of the TV we’ve got both strategies. We actually have a TV implementation in some senses built into Windows,” Ballmer said. “It works really well for small screen TVs that you might call a PC, but for that big screen device here’s a piece of hardware that we build, there’s no diversity. You get exactly the Xboxes that we build for you. We may have more form factors in the future that are designed for various price points and options, but we think it’s going to [be] important.” (Emphasis ours) [GearLog]