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Microsoft reacted to user backlash at the decision to not include a Hard Drive by providing two versions of XBox Next, one without a hard drive, keeping costs nice and low and one with A Hard Drive, to increase functionality for the more demanding XBox user.
XBox Next PC will be ready one year later and will also additionally offer a CD Burner, Wireless keyboard, mouse and controller and will connect to a high-definition TV or PC monitor. The PC version of the console will offer Media Center functionality so users will be able to view movies, music and photos, the device will also play most available PC games. Microsoft describes XBox Next PC as an XBox console with the added features of an entry level PC, without the possibility to upgrade the installed RAM or CPU.
http://www.megagames.com/news/html/console/xboxnextcomingin3versions.shtml
wowow.