Xbox 2 was due this year
...but isn't any more.
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Word from Gamesindustry.biz today informs us of a rumour that Microsoft were originally intending on launching the Xbox 2 in time for Christmas 2004, or so leaked details on internal schedules suggest, however this is now off the cards with a mid-2005 debut said to be still under consideration. This juicy gossip apparently comes from the mouths of several unnamed developers already in possession of Xbox 2 development information, who let slip the schedules they had seen, and revealed their shock at the original 2004 date.
Of course this year is now out of the question, the firm having originally planned to announce the new system's specification at GDC last month, however Redmond are apparently now pulling out all the stops for a release as early as possible next year in order to steal as much of a lead as possible over Sony. Sony meanwhile may let their PS3 linger for some time yet, instead letting their PSP portable take centre-stage.
"I think they underestimated how hard it was going to be to build a console that wasn't using PC architecture," a source in the know reportedly told GI.biz. "But they're racing to get to the market as soon as possible - they really want to reverse the head start that Sony had last time."
Several key Xbox development partners have reportedly already been persuaded to move their current developments onto the next-generation hardware, whilst hardly any PS3 teams are following suit, suggesting that Sony may indeed be some way behind in pushing their next lounge-monster out the door. Quite whether current-generation Xbox gamers will be happy with such a short life span however remains to be seen, and we imagine there will be outcry if a the new hardware fails to support older titles from the original platform, which is still in its comparative infancy by traditional console lifecycles.
More as we get it.

Comments
why oh why would people be "dissapointed" that its not reverse compatible... give me the new system.
is it true there making xbox 2
They are working on xbox 2 and ps3 but if xbox 2 comes out in 2005 people will be pissed because they just got one and if dose not play the orginal xbox games they will be shoot themselfs and xbox fans will leave to sony ps3 which will play the orginals from ps and ps2 and be compatibal with psp making xbox in a point of dangour one wrong move and there back to windows and on the drawling board
First of all, why would Microsoft make such a dumb move to not let Xbox 2 play Xbox games. Just think, Halo 1 will go down the drain, only the people who will have Xbox 1 will be playing it. All of the Best Sellers from Xbox 1 will live on if Xbox 2 is made compatable for Xbox 1 games. I doubt Microsoft is gunna make such a silly decision.
xbox two is going to be able to play xbox one games cause it would just be stupid to let the best system to just die with a bigger and better one made by the same people they see how good ps is doing with the backward compatible games so they will do it to.
and to gamer blitz i know to many people that want to have a new xbox right now they wouldn't care about a 2005 release date i know i don't
will they make games 4 xbox 2
I think we need a xbox 2 becuase the game industry would make more money and think of the lives of children who want the next generation hardware today. Wewant the new Xbox 2 to com out so make the console.