Spong.com points to this Inquirer article:A SLIDE from a non disclosure agreement (NDA) presentation seen by the INQ points towards Microsoft launching three versions of the Xbox 2, one of which is a fully functioning PC.
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The standard Xbox Next will not include a hard drive, which will allow Microsoft to cut costs on this basic unit. Xbox Next HD, as you might imagine, does include a hard drive and will offer increased functionality based on this. Xbox Next PC is, according to the presentation, an entry-level PC that runs Windows and all standard PC software. It also includes CD Burner, Wireless keyboard, mouse and controller and will work best connected to a high-definition TV or PC monitor.
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The plan outlined above talks of splitting the Xbox user-base into two distinct sections – those who have access to hard drive storage and those who don’t. This would necessitate a multi-layered development process for all games for the new system, seeing increased development costs in the next generation that current estimates already place at 50% more expensive than current platform development.
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