Gates Touts Xbox as Entertainment Hub

At the annual meeting of the Society of American Business Editors and Writers Monday, Microsoft chairman Bill Gates talked up the next Xbox as more than just a gaming console. He said the device, code-named Xenon, would serve as a complete entertainment "hub" capable of displaying music, video and pictures.

Although he wouldn't discuss specifics, Gates said Xenon would feature a menu-driven interface similar to Windows XP Media Center Edition. "If you're used to that menu, when you use this Xenon you'll see a menu a lot like that that lets you get photos, TV, music and all those different things," he told reporters.

Microsoft has high hopes for its second generation gaming console, set to appear for the first time on May 12 in a half-hour special on MTV. The public will get its initial taste of Xenon at E3 in Los Angeles later this month.

Gates boasted that the new Xbox could vault Microsoft to the top of the gaming market above Sony, which has remained the dominant gaming force for years. "Our goal in the last generation was to be in the game," Gates said, "We came out of this round a strong number two."

In his speech, Gates also took the time to poke fun at Apple's new Mac OS X "Tiger" release, which hit store shelves last week and has been greeted by rave reviews. It's easy to tell if you're using a PC or Mac, Gates joked, "Just take your applications and stick them in there and see if they run."

Microsoft next Windows release, known as Longhorn, isn't due out until late 2006. The long delay following Windows XP has prompted some analysts to suggest the door may be open for Apple to reclaim some valuable market share, much in the same way Firefox has done against Microsoft's Internet Explorer Web browser.