THE GUYS at Teambox have noticed an interview in Globes where M-Systems CEO Dov Moran said the Xbox 2 won't have a hard drive.
He's quoted as saying that the only thing ? surely not the only thing -- in an Xbox 2 system will be a CD. His firm, apparently, will be a main supplier for the Xbox 2 and Moran hopes, the only one.

M-Systems makes flash disks.


More here:

http://news.teamxbox.com/content.php?id=5518


source:


INQ

to me that seems like they are going backwards, I mean, going from dvd to cd.. and no internal hd... seems lame to me.