It wasn't too long ago when a Microsoft executive was trash-talking Sony. Nay, going so far as to make a bet against their rival gaming manufacturer. Case in point: J. Allard made predicted that Sony's PSP would downright flop. He was wrong, and to honor a bet with Newsweek's N'Gai Croal, he donned dreads and updated his Microsoft company profile page, admitting "N'Gai had it right," and that the PSP was not a failure.
Looks like Microsoft is up to the same antics again. This time, Xbox director of technical strategy and attack blogger Andre "Ozymandias" Vrignaud, is the one to take a bet with N'Gai. He states that "My prediction is that you're going to see the creation of a new, low-end SKU this holiday. It'll likely remove integrated WiFi, memory card reader, and most controversially, all backward compatibility. (Remember, there's still some back-compat hardware in even the new "software only" back compat SKUs; removing the remaining CPU is a significant cost savings.) You'll see a new WiFi dongle made available. And finally, this low-end SKU will likely come with a smaller 40 GB hard drive. The low-end price will be set at $399, with the higher-end 80 GB SKU dropping to $499."