Microsoft to combine Xbox and UltimateTV

With the Xbox costing Microsoft “$750 million in the current fiscal year ending June 30 and another $1.1 billion in the next fiscal year” in its competition with Sony’s Play Station and Nintendo’s Gamecube, Microsoft plans to combine Xbox with its UltimateTV digital video recording console. Both would still be available separately, but for about $500, you’d be able to get both in one console.

• Yahoo! News story: Microsoft Working on Hybrid Xbox Project
• Red Herring Magazine story: Microsoft takes heavy losses on the Xbox
• Slashdot discussion: XBox + UltimateTV for $500

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