Microsoft and Toshiba developing a new 'entertainment' Xbox, according to reports

October 22, 2007 – Microsoft and Toshiba are developing a new Xbox that will feature an integrated HD DVD drive and new entertainment software similar to its Media Center offering, according to reports from Australian news portal SmartHouse News.

There are also rumours that the device may include a dual HD TV tuner, recording capability, larger hard drive, Electronic Programme Guide capability and a docking port for an MP3 player.  An integrated HD DVD player would be good news for the HD DVD-affiliated group of companies, which includes Microsoft and Toshiba, as the integrated Blu-ray player is a key reason for buying a PlayStation 3 and is driving sales, according to a recent Sony Brand wave study.

A “senior” Toshiba official reportedly told the news portal: “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.”

The new device is forecast to be released late next year or at the 2009 CES show in Las Vegas.