I would take this one with a grain of salt until we get more solid evidence, but The Inquirer is reporting that Microsoft plans to release three versions of the upcoming XBOX sequel. There has been talk lately that the big M was thinking about removing the hard drive to bring down the cost of the next system, however it seems that they may be planning to actually release three versions of the XBOX 2. The first would be the standard game console, sans the hard drive. There would also be an XBOX 2 HD, which would include the hard drive along with some PVR functionality. Apparently, these two would launch in Fall 2005. Then in 2006 (probably around the time of the PlayStation 3 and Nintendo Revolution launch) Microsoft would release yet another version of the XBOX. This one is said to be a full blown PC with XBOX 2 capabilities out of the box. It would have a monitor, CD burner, and all the other PC fanfare - I am guessing this will be very close to being just a Media Center PC that plays XBOX games, and I expect it to sell similarly as well as the MCPC product line does - not very well.