What goes around comes around, they release this say end of year/early 2004, by that time PS3 will be almost upon us which will be touted as probably 30 times more powerfull than anything else, nintendo will have there next gen console in the pipeline which wont just be as powerfull but will have some great fun games to play, M$ and there X-Box will hopefully just disapear.
Refer to X-BOX NEXT or X-Box II projects. Never underestimate MS in terms technological pace i.e. MS is not CBM.
It was rumored that both ATI and nVidia was going to bid for next contract.
It was also rumored that MS was preparing to clone X-Box hardware to compete with Sony's Playstation market. That is, reuse the massive X86 clone war tactic to destroy the completion (i.e. AmigaOS, MacOS, Atari’s TOS, Acorns RiscOS and ‘etc’).
X-Box hardware cloned market may mirror Windows CE market i.e. single purpose based Windows powered devices.
One can see the MS’s market segment plans i.e.
1. Hand-helds,
2. Desktop.
3. Consoles.
4. Phones.
5. 32bit Severs.
6. 64bit Severs.