Earlier today, a pretty big rumor came flying out of the Internet, stating that Microsoft just might let other companies build 360s and they will supply everything else they'd need for it. The rumor came via the latest issue of EGM and its Quartermann section, which is usually pretty reliable.

Everyone's bringing up the Panasonic Q and other console collaborations, but I don't think that's exactly what's going to be going on here. A little further down, I'll get into what I think will happen, but first, let's talk pros and cons:

Now, this does seem ridiculous. Putting your technology in the hands of others is a huge risk, and not always a money-making one. Anyone want to remind me how many Panasonic Q consoles ended up getting sold in Japan? Anyone? Yes, it wasn't a mass produced console, but I'd be shocked if the number broke 1,000.

And no, we are not getting a 360 game-playing PS3 or Wii. No way in hell. Sorry guys, get that ridiculous thought out of your head right now.

On top of that, what about concerns over hacked consoles being able to get into Xbox Live? Surely these 360s will have access to Microsoft's Internet service. Will they be able to have as tight a grip on Live with these new third-party consoles as they do right now with their own first-party hardware? You run that risk anytime you hand over something of yours to someone else.

What about repairs and technical issues? Can Microsoft be blamed alongside the company if something goes wrong? How much oversight will Microsoft have over these third-party outfits? What about compatibility issues? How easy will it be to transfer data between first- and third-party 360s? These are just some of the complicated issues that must be discussed and ironed out before we can even think of a third-party 360 coming to market. It's a daunting and long task, and we aren't likely to see these for at least another 18 months if it's true.

If this is true, though, then we're quite possibly on the edge of Microsoft transforming from a first-party hardware developer into a second-party software developer for other company's 360 consoles, alongside their own. While at first I mocked this as being fake... I'm not so easily convinced that this could never in a million years happen. In fact, it puts Microsoft in a very familiar place...





Remember, Bill Gates made his money building an operating system and other basic applications for other people's PCs, not building the computers themselves. With no 360 in Microsoft's hands alone, there's no RRoD issues and the fountains of money that have bled from that. And maybe, just maybe, no RRoD at all. These other companies compete to build better, stronger, faster machines using the latest technology, and Microsoft provides the backbone supper through games and services like Xbox Live. We've already seen them integrate it onto a PC with Games for Windows and Live on Windows, so who's to say they can't do it on one or more consoles?

The bottom line is this: the 360 has hemorrhaged money for Microsoft. They can save millions by doing this and even turn that red ink into black. Of course, there are other problems like responsibility and security issues that will have to be seriously considered before such a plan is ever made real, but do not discount this idea. It is very real and it may happen sooner than you think...