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  Microsoft Working on Hybrid Xbox Project
Time: 02:48 EST/07:48 GMT | News Source: Reuters | Posted By: Byron Hinson

Microsoft Corp has been quietly working since last fall on a device combining its money-losing Xbox video game console and with its digital video recorder, technology magazine Red Herring reported on Tuesday. The publication also cited a source as saying internal Microsoft estimates showed that the software giant would lose $750 million on the Xbox game console this fiscal year and $1.1 billion in the next fiscal year, ending June 2003. That compares with an estimate given to Microsoft Chairman Bill Gates in 1999 that the Xbox project could lose $900 million over eight years, author Dean Takahashi said.

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