IGN reports on how Mcirosoft will remain the sole manufacturer of the XBox console. They want to retain all rights to the device. This also allows the the option of licensing the technology for use outside of the XBox.

However, the possibilities of licensing Xbox software for use in otherentertainment hardware opens up a wide range of possibilities. Forexample, Microsoft could include the core Xbox software with Windows"Longhorn", the next major desktop Windows release. Giving every PC theability to play Xbox titles immediately gives the Xbox a massiveinstall base which segues nicely to other Microsoft gaming products.

IGN may be looking to deep into the situation with that statement since this information came out around the discussion of HD-DVD drive. I believe Microsoft wants to set a standard for the HD-DVD format since a standard has yet to be decided around the globe.