I have 2 buddies that work for MS, one for Xbox, one for bungie. The latest scoop I heard (last week) was that MS didn't have ANY working prototypes of Xbox2, just G5'w with custom graphics cards to simulate the new Xbox2.
There have been a NUMBER of developers working on games for Xbox2. MS is pinning their future in the console market on being first to market with the next gen console, as well as having a HUGE library of games to go with it. Xbox2 won't be backwards compatible, so they will need the library to entice people to buy.
Rough estimate is Late Fall 05, but again as of right now there are NO working Xbox2 units. Bungie dev's have the G5's to familiarize themselves with the code right now, but no boxes. OH yeah, the controllers will be wireless also, no cords this time.
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