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The updated developer tools, codenamed Lakeview, are being utilised during the production of the Xbox Live TV and dashboard TV add-ons, an anonymous source told GigaOM.com.
Lakeview is said to be a work in progress, requiring ongoing modification and forcing the developers of the Xbox TV application to retest on a weekly basis.
The website notes that the final version of the software could be used by third-party developers to create other Xbox 360 applications.
New TV features will be included in the next Xbox 360 dashboard update, which the report claims is scheduled for November 25. A leaked memo from PayPal last month contradicts this, suggesting that the update is slated for November 15.
Microsoft previously announced partnerships with a host of television streaming partners, including BBC, LoveFilm and 4oD.
Watch a promotional trailer for Xbox TV below:
