Microsoft have hardware in the works that could be launched as early as May, during the annual E3 video game convention in Los Angeles.
The true next generation of hardware is pegged for a 2005 launch, with Microsoft planning Xbox Next.
Doherty expects an Xbox 1.5 that will be cheaper to manufacture and will be a smaller, lighter version of the current Xbox. He said it will retail from $129-$149. Microsoft also might introduce a new combination Xbox-digital video recorder for about $199.
Microsoft co-founder Bill Gates, perhaps thinking that the PC market has peaked for now eager to expand its entertainment hardware empire, are each focused on the living room.
Xbox now ships with DVD movie playback, an Ethernet card for broadband connectivity, a disk drive for storage and the ability to rip and listen to CDs. The next wave of hardware is expected to incorporate DVR technology, further positioning the game system as an entertainment hub.
Little is known about Xbox Next, other than that it will ship before PS3 and likely will include UltimateTV technology (DVR and TV Web surfing), and it could serve as a PC for the living room.
There's also the possibility that Microsoft will release two versions each of their systems: one devoted strictly to games and another with all the bells and whistles. Broadband connectivity will be at the center of all of these machines' functions.
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Who here would buy a XBox 1.5?
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