RUMOR ..Toshiba Working with Microsoft on New Entertainment Box?

[Scott]

Microsoft, according to insiders at Toshiba owner of the HD DVD patents, claim that Microsoft is working on a brand new Xbox that will incorporate not only a new HD DVD drive but a large hard drive and new entertainment
software that is a spin off from its struggling media centre offering.

The device is being developed in response to the PS3 driving sales of games software and Blu-ray content in several countries. A recent Sony Brand Wave study conducted in five countries including the UK, Australia, France Germany and Spain revealed that a key reason that consumers are buying a PS3 is because it includes a Blu-ray player.

Recent GFK research reveals that the recently launched Xbox 360 HD DVD attach player is not selling well. Another factor that impacted early sales of the Xbox 360 was that Microsoft failed to include a HDMI port - omitted because Microsoft wanted to cut down the costs of the console in an effort to compete up against the PS3.

The new Xbox device, while allowing for extensive gaming capability, will be positioned as 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. For Toshiba, the device is critical if it is to be successful in beating Sony and the Blu-ray promoters.

Also being discussed is the development of an open standard docking port similar to the 17 pin iPod port. This would allow all manufacturers to use the same port for docking.

A senior Toshiba executive in Singapore told SmartHouse that "An Xbox with a built in HD DVD drive is critical. They and we are working on it. It also has to be more than a gaming machine. Microsoft recognise this. A version of the device may also be sold under the Toshiba brand name".

Scott Browning, the Marketing Director of JB HiFi Australia's second largest consumer electronics retailer said, "The device is a lay down mis`ere and essential for the HD DVD camp. We are told that one is coming. The PS3 has been extremely successful for Sony in getting Blu-ray off the ground and for Microsoft, the omission of a built in HD DVD player is set to hurt sales going forward as consumers are aware that the PS3 comes with a Blu-ray player."

Both Toshiba and Microsoft have also explored the possibility of a new open standard chassis system that allows an Xbox to be slotted into a HD TV screen over 40-inch. The open standard bays will allow hard drives to be upgraded and expanded similar to the way that users can upgrade the hard drive on a PC.

Anothe r big problem for Microsoft according to insiders is getting the heat and noise output from the current Xbox 360 under control so that the new device can run silently while a movie is being played. It is known that Toshiba has been working with Microsoft on this issue as it has extensive experience in notebooks and "quiet" drives. Currently most iPods incorporate a Toshiba drive.

Another benefit for Microsoft in moving to a new Xbox platform is that it can introduce new components that are less likely to fail. Currently the PS3 has a failure rate of under two percent. Recently Microsoft was forced to allow for a $1.3 billion charge against warranty claims following reports of up to a 30 percent failure rate of the original Xbox 360.

The new device is expected to be released late in 2008 or at the 2009 CES show in Las Vegas.

link (http://www.smarthouse.com.au/Gaming/Console/P4G5C3U2?page=1)

Interesting. Like we need more skus.

[prateek/pwnage]

I dont think toshiba can do much personally. I mean they dont really specify in consoles of any type. Or like making a hard drive or memory for the console like sony can.

[NDM]

pwanage your wrong! They make good laptops! The new one hade an Gforce 880 in it and vista pack and cool skin of it and 300 gb on one and 300 gb one the second i think they would make an good consule if the rumor is true!

[prateek/pwnage]

pwanage your wrong! They make good laptops! The new one hade an Gforce 880 in it and vista pack and cool skin of it and 300 gb on one and 300 gb one the second i think they would make an good consule if the rumor is true!

Yeah but there are heaps of other companies that can make hard drives. Heck i could go buy a hard drive from a local shop from some random company and that wouldnt make me a good console maker.

[Cov3rt]

This is ridiculous if true, why not have a flavor of the week and release a new sku every week.

[Master_Dylmo]

lol iif the rumour is tru its not gonna come out for a year minimum!! o reckon it would b cool (i reckon ne new console would b cool)

[prateek/pwnage]

lol iif the rumour is tru its not gonna come out for a year minimum!! o reckon it would b cool (i reckon ne new console would b cool)

but it would just die down. Like it would go up then come down then go up. maybe. seeing as its not a very popular company or a recognizable one in making consoles its going to need something intriguing to get peoples attention. but what more could they possibly bring out.

[Ghost]

MS doesn't want to be in the hardware business and this move is one step closer to their ultimate goal. - the goal of being the brains behind everyone's living room entertainment hub.

MS could care less who manufactures the hardware - be it Toshiba or Panasonic or even Sony, the just wants to be the one and only operating system behind it.

MS would just create the base specs, software and infrastructure and license that to manufacturers. No more hardware worries for MS who just sits back and collects licensing fees from all the manufacturers. Gamers get to buy any game knowing that is will play in their system no matter if they have one made by Toshiba or Sony.

Downside is the os would be less innovative with a lack of competition. The real competition would be between the manufacturers who would start to skew the specs to get a competitive edge and that would not only threaten universal compatibility but any os updates as well. Imagine MS pushes the fall updates to manufacturer and then consumers have to wait on their particular manufacturer's R&D process to test and repackage it for release...so it could become a summer update for you while your friends have it by winter. So it ends up the nightmares everyone left PC gaming behind for follow to this new paradime of home entertainment systems.

[Mr Cool]

The problem is that this thing is going to be hyper expensive and most likely be compared to when Sony first launched the PS3. The PS3 was so expensive because it had the built in blu-ray and all the memory. Microsoft seems to now be doing the same...

[Scott]

This is ridiculous if true, why not have a flavor of the week and release a new sku every week.

You mean like Sony (2 new SKUs in the last 4 months)?

I do agree that it is somewhat pointless. It will be MS's version of the PSX (that PS2 that had built-in satellite and all that other garbage). By the time that box hits, people will already be anticipating the next gen (assuming a standard 5 year cycle). MS made their bed without HD-DVD and should continue to drive the cost of the console down towards $149 instead of adding yet another (5th) SKU. Price and games will determine the winner, not HD formats.

[Toxic]

With the cost of hardware components dropping, and MSs plans to downsize the chip size at least twice before this new box would come out when it comes out it might not be as expensive as everyone fears.

SOny's PS3 was expensive becasue blue ray components were hard to acquire, and manufacture and it was an early adopter.

So far into the 360s lifecycle a new model with built in HD player and bigger drive might clock in at $450 or even $399 by end of 2008 or 2009. IF that was the case would you not pick one up if you already owned a large selection of 360 games and wanted to upgrade your living room instead of going for a PS3 which might or might not have decent support by then?

MS was smart to come to market first capture the hearts of gamers and then go from there when the hardware costs come down. THe only thing that bit them in the ass was the 30% failure rate and the costs involved as a result.

Then again who knows what will happen. Sony might be proven right as devs make bigger and bigger games and run out of room using DVD or as Sony's games improve due to the large capacity of BlueRay or sales increase because of the added benefit of the player. At that point they will either have to offer standard epesodic downloads and a way to upgrade the drive space or will have to start making games on HD player to comptete.