It isn't surprising at all. The trend has been away from TV in general, so a set-top-box doesn't make a lot of sense. And, considering any TV service you have comes with a set-top box anyway, it seems redundant to have your service-provided box, plus an Xbox. If you're thinking about a Roku box or something like that, then you get to a situation where that can be done with an app. The financial burden MSFT would have to assume to get the licensing done right with so many different TV providers just doesn't make sense financially or as a sales point for what is supposed to be a gaming console.