Rumour - Next gen Xbox bundled with Kinect, two model launch planned

The latest whispers suggest the next Xbox console will come in two flavours, but both of them with taste strongly of Kinect.

"Kinect is set for a significant upgrade and has a very strong likelihood of ending up bundled with the machine," a Digital Foundry post on GamesIndustry reports, citing anonymous sources.

The sources believe Microsoft will follow a similar launch strategy as it did with the Xbox 360 by releasing at least two models.

"A pared down machine is to be released as cheaply as possible, and positioned more along the lines of a set-top box and perhaps as a Kinect-themed gaming portal, while a more fully-featured machine with optical drive, hard disk and backward compatibility aimed at the hardcore would be released at a higher price-point," the report continues.

The sources claim Microsoft invited developers to an event at Disneyland after E3 this year, asking for feedback on the challenges of developing for the Xbox 360 and what they'd like to see in new hardware - which suggests it's still a long way out.

Several other next-gen Xbox rumours are discussed over the course of the article, including the possibility of dual GPUs and competition from Nintendo, amidst practical discussion of manufacturing capacities and logistics. Hit the link above for the full thing.

Thanks, CVG.