Microsoft revealed at Gamescom last summer that it was indeed working to add DVR functionality to the Xbox One. The feature would allow users with an Xbox One digital TV tuner adapter and an antenna to record live, over-the-air broadcasts without incurring any subscription fees.
It appeared as though gamers would need to use an external hard drive to store recorded content but that wouldn't be too much of an issue. We were also told that users would be able to stream recorded TV shows to Windows 10 devices using the Xbox app, an added perk.
Microsoft intended to add DVR functionality sometime in 2016 but that's no longer the case.
In a recent statement to The Verge, a Microsoft spokesperson said that after consideration, they've decided to put development of DVR for OTA TV on hold to focus their attention on launching new, higher fan-requested gaming experiences across Xbox One and Windows 10.
Microsoft fielded loads of criticism for its decision to initially market the Xbox One as an entertainment hub rather than a pure gaming console. I suspect those critics will certainly welcome this news, especially as rumors continue to circulate regarding new hardware.
Microsoft is rumored to be working on at least one new game console and / or streaming device which may or may not show up at E3 next week. If a streaming device is in the cards, it's entirely possible that its functionality would have overlapped with the DVR capabilities.