The Inquirer is reporting that the Xbox 2 will be released in three versions and will in fact be called ‘Xbox Next.’ The standard Xbox Next will have no hard drive; the Xbox Next HD will have an hard drive and what sounds like may be PVR functionality. Most interestingly is the Xbox Next PC, slated to be launched about a year after the first two, which will be a full-blown PC with a CD burner designed to work with a PC monitor and—this is just me going out on a limb here—Media Center Edition-equivalent and compatible functions. The idea of the two-phase launch is suggested to be a way to both beat the Playstation 3 to market and confound its launch.
The Xbox Next is reported to launch in Autumn of next year.
Microsoft to release three versions of Xbox 2 [TheInquirer via Kotaku]
http://www.kotaku.com/gaming/gossip/microsoft-goes-triple-x-025460.php