Gamegossip just broke one of the biggest Xbox 2 news. Steve Ballmer, during the "Financial Analyst Meeting 2004" of Microsoft announced that there would be no new Xbox next year. They are still working hard on Xbox 2. Update : I've just been told that the way Ballmer told that could (and should maybe) be understood as "no Xbox 2 in this fiscal year". So Xbox 2 could be released after July 2005, and that would not be a surprise anymore ;) If that's indeed the case then sorry about that news.