According to this MSNBC article – and they should know right? – Microsoft is working on a super-Xbox product code-named Freon, which will incorporate Tivo type PVR functions as well as broadband gaming. The problem is that the thing could end up retailing for around the $500 mark, which is a bit of a steep premium on current console prices to say the least.

Meanwhile this piece from the Inquirer says that the next version of the Xbox will be demonstrated at a Tapei computer show next month. Couple all this talk with rumours that Mr Bill is less than happy with the Xbox sales performance to date and it looks like things are a-popping down at the games department of Redmond square.