According to "inside" reports, Microsoft is
still planning to launch with two versions of the Xbox 360, with the higher-end model apparently packaged with
Microsoft's WebTV system—and have backwards compatibility courtesy of a built-in hard drive. WebTV would bring
basic Internet functionality to your home entertainment system, including a web browser, email, and IM. Some
sources speculate that 80% of the Xbox 306 launch units will be the higher-end models.
With that figure in mind, and without reliable price quotes, it's difficult to say whether or not the lower-end model will be severely crippled; or even worth buying. Without backwards compatibility—will it even be able to play all of the next-gen games?—and without many of the multimedia features, it seems like Microsoft is just throwing this model out there to attempt to compete with Sony's lower-end PS3 (yes, there will likely be multiple PS3s) and the Nintendo Revolution. It's too early to call, but Microsoft still has a lot of choices to make, as do we…

