Microsoft is secretly developing a PC-based computer games console to compete in the market dominated by Sony, Sega and Nintendo, the Sunday Times reports.
While Microsoft officially denies the existence of the set-top box for home computers, codenamed the X-box, the Sunday Times said a number of developers were briefed with the details at a trade show in London last week.
They were taken to a nearby hotel and asked to sign nondisclosure agreements, the newspaper said, adding Microsoft said it never commented on speculation or rumor.
Microsoft is already involved in games development and has contributed technology to Sega's new Dreamcast console. Sony, the market leader, and Nintendo are to launch their next-generation platforms, PlayStation 2 and Dolphin, next year.
The Sunday Times quoted Chris Deering, president of Sony computers in Europe, as saying, "If there is any truth in these rumors, the move seems to be a signal of disappointment, and one of loss of confidence in Sega's new Dreamcast in which Microsoft is a partner."
Copyright 1999 Reuters Limited.
