Posted by AirRaid on 10/19/07 22:11

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

Toshiba Working With Microsoft On New Entertainment Xbox

By David Richards | Friday | 19/10/2007

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.

Another 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.

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