As Microsoft's next console comes closer to its public debut, the world's buzzing about its possible features.

The rumor: Three 3.5GHz PowerPC CPUs
The reality: Very hard to swallow. Today's top of the line dual 2.0GHz CPU Macs require nine cooling fans, and PPC clock speeds of 3.5GHz might not be reached until 2005. A three CPU design would be unprecedented and expensive, plus less likely than Sony's proprietary Cell to be cheap enough to sell until it's too late.

The rumor: ATI R600 Video Chip.
The reality: Highly likely. The original Xbox went a generation beyond current technology with a customized Nvidia GeForce 3, and ATI's R600 would fit the pattern. Assumed to be a DirectX 10 compatible chip, the R600 will be two generations beyond today's stunning R420 and 2005's R500, which will feature better shaders.

The rumor: 256MB Main RAM, 10MB Video RAM
The reality: Pretty likely. Ten megs of dedicated video RAM virtually guarantees consistent HDTV quality visuals, while the 256MB main RAM represents a decent four times increase over current Xbox specs. That's not enough for developers, but it'll surely be faster than before. Better that M$ just forget the third CPU entirely and double the RAM.

The rumor: New Hard Disk Concept (you've been dying for this one..he he)
The reality: Most likely true - for now. M$ execs are developing new flash storage technology for the new Xbox and have suggested that no hard drive will be included this time. But M$ often shifts specs at the last minute, even leaving big partners standing at the altar. Expect different storage options.

The rumor: iPod Killer Detachable Hard Disk
The reality: A one in three chance. Engadget posted claims that J. Allard casually leaked plans to make an MP3/WMA playing detachable Xbox HD and sell them at a loss ($100 MSRP) to compete with the iPod. Great idea, but don't hold your breath.

The rumor: AAA Rare an Bungie Titles Held back From Xbox
The reality: A near certainty. Following Ed Fries' departure from M$, numerous Xbox games were canceled or transitioned to Xbox next. Rare's upcoming slate, rumored to include Perfect Dark Zero and Killer Instinct 3, will supposedly accompany Halo 3 as early-ish Xbox titles. The truth should be out soon.

The rumor: 2004 Release Date
The reality: Damn near possible. First tier companies received early development kits only months ago, and even assuming the technology was ready for manufacturing (which it's not) it's likely that M$ has heard the Sega Saturn launch stories already. If half the specs we've heard are true, Xbox next could slip past late 2005 for production reasons alone.

The rumor: No Backward Compatibilty (see my latest news story as well).
The reality: 50/50 odds. Takahashi quotes Nvidia's CEO to suggest that unless Nvidia chips are in the next machine, emulation is M$'s only option to run original Xbox games without getting sued. The next machine will be fast enough to emulate, but it'll come down to hard drives, good lawyers, and M$'s checkbook!

Thanks goes out to gameindustry.biz, XBN, GameStop, IGN, and every other rumor mill source for keeping tension high and certainty low!