Flash memory maker M-Systems announced on Wednesday that it has signed a contract to provide storage products for future versions of the Xbox, bolstering speculation that Microsoft may ditch the game console's hard drive.

The idea of the move would be profiting from console sales which is harder when you bundle expensive components. Although this comes as pure speculation, in my opinion this wouldn't be a smart move from Microsoft given the on-going trend of converging game consoles with 'media centers', that is unless they plan to offer various versions of the console, with or without a hard drive.