Microsofts is still planning to ship two different versions of its Xbox 360 console at launch, according to sources close to the company - while reports suggest that the high-end version may feature the firms WebTV system. Its long been thought that Microsoft plans to ship two different Xbox 360 bundles, one with a hard drive and one without, and give users the option of upgrading the low-end system with a hard drive accessory.
Sources close to the firm have confirmed this week that theres much talk of two distinct price points, which seems to indicate that this is still the plan for launch - while a report on well-connected gaming blog Kotaku gives an indication of how the two different models will be differentiated. The site reports that the basic edition of Xbox 360 - the version without the hard drive - will not have backwards compatibility, while the "premium" version with the hard drive will ship with Microsofts WebTV functionality built-in.
News source: GamesIndustry.biz