Speculation continues to rise that Microsoft will opt not to include a hard disk in its next Xbox game console. The hard disk, touted as a major advantage of the Xbox game console, has let gamers store games, as well as save and download new game content from Xbox Live. Recent reports have speculated that Microsoft plans to drop the hard disk to help reduce manufacturing costs.
A new deal with flash-memory maker M-Systems to provide storage products for future Xbox versions adds fuel to the speculation. M-Systems is primarily known for its popular DiskOnKey USB storage products. The company is expected to develop a customized memory unit for Microsoft. Large-capacity flash memory could replace the hard disk in the next Xbox.