Its code name is “Freon,” reflecting the notion that it is the coolest secret project at Microsoft Corp. these days, at least in the eyes of the Xbox video-game division. WHAT FREON STANDS FOR is a souped-up successor to the Xbox console — capable of playing games but also offering television capabilities, such as pausing live TV and recording shows onto a computer hard drive, say people familiar with the effort. Though it is unclear whether such a product will ever be built, its core concept appears to have the backing of Microsoft Chairman Bill Gates, who wrote in an internal memorandum in January that he was a “big fan” of a machine that would combine video services with gaming. Such a device, which could cost around $500, would have another big advantage: It could beat video-game market leader Sony Corp. to the punch. Full story here!