Dov Moran, CEO of M-Systems, the company which has been contracted by Microsoft to provide flash memory storage for Xbox 2, has told an Israeli newspaper that the next-generation console will not have a hard disc drive. This is the first time that anyone connected with the development of the system has gone on record about the issue of the hard drive, although sources at Microsoft and key developers have told us that it was unlikely that a hard drive would be included in the console.
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