You heard us. The pro-business shmucks over at cnn posted a very intresting conspiracy yesterday. Seems like M$ is currently doing some very intresting makret research into what would make a good Xbox 3, or would it be the Xbox 2 1/2?

Anyway this Xbox 3 would be similar to the Alienware Console we reported earlier this month, in that it would feature a fully functional version of Windows, CD burner, DVD player (with remote control), built-in access to Xbox Live and a hard drive. Control-wise, the system would come with both a keyboard and mouse and a standard Xbox controller. The price point this particular study tested was $599.

One slide they found even describes the base unit, which would require a PC monitor or high definition television, as being backward compatible with current and next-generation Xbox titles. It would also play PC games. We told you M$ wants a piece of the action of EVERY market didn't we? They aren't just happy with Consoles or PC or Media Centers they aslo want the Hybrid Console Market as well. What do you think?