Yes, there is a new Xbox being developed and according to Microsoft, is well into its development stages. Very few reports have come in about game developers wanting a first shot at unreleased Microsoft harware, which may seem a little worrisome. However, not many would ever guess that one of the companies wanting a cut of the pie would be Blizzard, with an unfortunately unsuccessful run on non-PC consoles. During the Game Developers Conference in San Francisco, Blizzard's Rob Pardo confirmed further discussions with Microsoft in regards to the new machine.

"There are are so many games like we make at Blizzard that we don't take to consoles because they don't support the input device and you end up with crappy ports. That's why RTS games never do well on consoles," he said in regards to bringing certain genres to the TV. "If I was them, I'd be sitting around trying to figure out what's a cool input device that supports all types of new kinds of games."

Some others are worried about the implications that Blizzard is one of the only studios having an early advantage over the others. "How many designers in the games industry do you think they are rounding up to [talk to], because this is going to make or break them this time around," said Acclaim's David Perry.

"I'm not aware that they are putting a big amount of effort into finding out how to make the games. The people who are actually physically going to make the games are all going to get a surprise," he added.

Otherwise, some other third-party input has suggested that the new Xbox may go beyond the vision brought to life by the last two. "I get the impression they're focusing on owning the living room," Warren Spector, boss of Disney's Junction Point Studios discussed. "One device that lets you watch movies, television and play games and music and all that stuff.