According to a Mercury News report, Microsoft has intentionally leaked the hardware specifications for it's next-generation Xbox video game console in an attempt to battle against dominant player Sony. The interest focuses on keeping costs as minimal as possible after discovering that some of the bloated features of the Xbox have been rarely used.
The new Xbox will allegedly have no hard drive and will probably stick to memory sticks similar to what Sony is currently using.
A switch from nVidia to ATI graphics technology may cause it to become incompatible with previous Xbox games. Depending on how Sony will design it's upcoming console, Microsoft is considering having 256MB dynamic RAM.
The new console will be powered by three IBM-designed 64-bit microprocessors (as used in high-end G5 PowerMacs) and an ATI graphics chip that is apparently "much faster" than the upcoming R400. The release date of the machine is quoted as autumn 2005.