Microsoft Working On New Xbox Already?

Microsoft, according to Toshiba insiders, is working on a follow-up to the 360, already. The new machine will incorporate a HD DVD drive, a large hard drive and a new dashboard that’s built for entertainment and media, just like the PS3’s XMB, according to Smarthouse.

Smarthouse claim this is in response to the PS3’s Blu-ray driving capabilities, and with the HD DVD drive an optional extra this does make sense for Toshiba to get more HD DVD hardware out there, even if it’s via the old Trojan Horse method. The new machine will also include a HD TV tuner (like the PS3’s PlayTV) and a docking port for MP3 players. For Toshiba, the device is critical if it is to be successful in beating Sony and the Blu-ray promoters.