Microsoft to Launch an Xbox Media Center PC?

[Suhit Gupta]

<div class='os_post_top_link'><a href='http://www.ehomeupgrade.com/entry/312/microsoft_to_launch' target='_blank'>http://www.ehomeupgrade.com/entry/312/microsoft_to_launch</a><br /><br /></div><i>"Following the lead of other commodity manufacturers, Microsoft is looking to soak up as much shelf space as possible by offering as many as three versions of the Xbox 2, which will now be called Xbox Next. The three versions will include a base model without a hard drive and a model with a hard drive, followed a year later by a hybrid Xbox / PC with media center functionality. Appropriately, the hardware trio looks like a strategy to accomplish three goals. First, the model without a hard drive will allow a lower price point, and therefore make Xbox available to more people."</i><br /><br />Second, having two models at launch and three models a year later is classic commodity marketing. It's a small but significant psychological advantage, and the same should hold for consumers faced with a choice between PlayStation, Nintendo, Xbox Next, Xbox Next HD, and Xbox Next PC. Finally, launching the Media Center/PC version a year later will put a more full-featured product up against Sony's PlayStation 3. I wish there were more details on the exact specs of the devices, although all of the above is still not completely certain yet so time will tell.

[Felix Torres]

I have a hunch some of this is being misread.
What I think is possible is that there will be two different XBOX configurations; one minus HD for the japanese market where they made such a fuss over the size of the XBOX and one with HD for sale elsewhere.

As for the XBOX PC, that sounds much like the HomeStation prototype that MS toyed with two years ago and eventually decided against.
Wisely so, apparently, given the underwhelming reception (saleswise) of the PSX, even in japan.
Which isn't to say its not a bad idea to have such a prototype around in case the market changes, but for now it seems like a two box solution (MCE+XBOX+extender kit) is closer to what the market wants. But its not a bad fallback product, in case MCE PCs don't grow much beyond their current 4% market share.

How far that strategy will go, we'll see between now and the release of the XBOX2, next fall.

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I think the Xbox and Xbox Next are just steps Microsoft has to take to get a broad adoption of the Media Center PC. I think that gaming on the Xbox will bridge the gap between 3' and 10' computing.