iloveCarla writes "Microsoft is partnering with Toshiba to turn the Xbox into a full fledged HTPC. With built-in HD DVD, a larger hard drive, revamped "MCE" interface, and possibly HDTV tuners, the Xbox would be in a better position to compete against the PS3 in the race to serve as the defacto entertainment hub for couch potatoes. According to the article "The new device is expected to be released late in 2008 or at the 2009 CES show in Las Vegas."
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