World’s largest software maker Microsoft Corporation may showcase working prototype of its next-generation game-console early next year after making announcement of the product this Fall. At the same time long-time entertainment leaders, Sony Corporation and Nintendo, said they would showcase their new consoles at E3 next May.

A report over Eugogamer.net web-site claims that Microsoft will use its X04 event to announce the Xbox 2 console in mid-September, 2004, and CES or Game Developer Conference to show off a working model of the next-generation console presumably called Xbox 2. The demonstration in about 6 months time before the commercial release of the producy is said to be conditioned by Sony’s and Nintendo’s intentions to expose their PlayStation3 and GameCube 2 consoles in mid-2005 at E3 exhibition and Microsoft’s desire to attract maximum attention to its forthcoming technology.

Microsoft’s representatives did not immediately respond to enquiry seeking for comments.

It is official that Sony Corp. and Nintendo will demo their new consoles in mid-May, 2005, in Los Angeles, California, at the E3 show.

It is not clear whether Microsoft will showcase fully-functional Xbox 2 console early next, or will expose a prototype with limited functionality. Microsoft’s demonstration of fully-functional game-machine would oblige Microsoft to manufacture a 3.50GHz PowerPC processor presumably using 65nm process technology, a North Bridge with integrated graphics core from ATI along with some other components. Typically console makers begin to ramp up the orders for consoles’ components about a quarter or two before the launch, therefore, it is possible to expect Microsoft to demonstrate fully-fledged Xbox 2.

Microsoft is reportedly going to dramatically change its strategy of getting logic components for its Xbox 2 console that is to be released on the middle of the decade. Instead of getting chips from its partners, Microsoft inked technology agreements with ATI for graphics technologies, IBM for microprocessors as well as SiS for I/O and multimedia technologies and is likely to manage chip manufacturing itself.