I'm surprised you are consused sith such a crap quote. This snippit of text opens a proposition [no HD], reinforces the proposition [network, etc], but doesn't answer it.
Perhaps including the full quote from TFA "There has been speculation within the industry that Microsoft may not include a hard drive in the next version of the Xbox console, in favor of network-based storage that would reduce the console's physical size and cost." makes it more complete - that they know nothing, rather than anyhalf stared, half finished, empty middled quote as given.
Next minute they'll be spelling you're as your, pluras with 's, too as to. Grammar on