Xbox 2 looks more unlikely in 2005

Yeah, yeah, we know this rumor has been bouncing around the industry for awhile now, but it's still worth mentioning. Steve Ballmer has let slip another tidbit about the Xbox 2, saying on July 29th that we shouldn't expect to see the next gen console in 2005. To be more succinct, he said, "There's no new Xbox in the next year, but, man, are we hard at work on that next Xbox." Take it for what it is, but Microsoft would be wise to hold off as long as possible. If they don't do this right, they can kiss the market goodbye. Technically, his quote could mean the console will be available by Christmas 2005. But our best guess is that they're managing our expectations. We wish them luck with that, by the way.