Microsoft's new console could be out by next Christmas

Trade paper MCV lead this week with a story confirming the existence of Microsoft's X Box, and that it could be here quicker than anyone had anticipated.

Apparently Microsoft took advantage of last week's ECTS to talk to the development community about their new games system, which they're likely to license to third part manufacturers (Gateway and Dell have been linked) rather than market themselves. The system is alleged to feature a 500Mhz Intel processor and Nvidia's GeForce 256 GPU graphics chip, as well as Internet capability and a DVD drive. It's thought that the system will be priced at under £200 and software houses won't be charged a royalty fee for supporting it.

With the power of Microsoft behind it, and if the machine does indeed come in at a price point of under £200 with the spec mentioned above, surely this must be a big blow for Sony's PlayStation 2? Direct your thoughts and comments to Andy Smith.