Internet rumors are suggesting that future iterations of Xbox technology could be licensed out to various electronics manufacturers, in the manner of the Nintendo/Panasonic ‘Q’ device and the failed 3DO console.
The suggestion has been that Microsoft upper management is seeking to stem the amount of money being lost on the production of Xbox hardware, which has thus far not been recouped through software sales.
As is their policy for Internet rumors, Microsoft representatives have refused to comment on the suggestions.