at Toshiba claim that Microsoft is working on a brand new Xbox that will incorporate not only a new HD DVD drive, but also a large hard drive and new entertainment software.The console will attack the PS3, driving sales of games software and Blu-ray content in several countries.
A recent Sony study in the UK, Australia, France, Germany and Spain has revealed that a key reason that consumers are buying a PS3 is because it includes a Blu-ray player. The Xbox 360 HD DVD attached player is not selling well and the fact that the Xbox 360 did not include a HDMI port means that Microsoft sees that it is facing potential competition from the PS3.
Microsoft's latest idea appears to be a new Xbox device at the center of an entertainment hub that includes gaming and extensive wireless networking capability as well as 1080p playback. There is also talk of it including a dual HD TV tuner and EPG capability and a docking port for an MP3 player.