Microsoft plans to transform its new Xbox game console into a general home device that handles everything from e-mail to video recording, according to analysts who follow the company.

Prudential Securities analyst Hans Mosesmann released a report Tuesday, stating that HomeStation, a multifunction consumer appliance that has been the subject of rumor and speculation for several months, is real and could dramatically change the PC market.

Richard Doherty, president of research firm The Envisioneering Group, said in an interview that based on briefings with Microsoft and its suppliers, he believes a version of the HomeStation will be on the market by this fall.

Microsoft representatives declined to comment on the HomeStation reports.