Interesting story and it would certainly make sense for Microsoft to do a little feature-matching at a vastly lower price to steal some PS3 glory and muddy the waters. If it's true you can expect to see a launch (or at least a strong announcement) by late October. Hopefully this rumour isn't solely based on the evidence of that blurry photo though, which quite frankly could be just about any piece of home entertainment hardware, such as a media PC or HD recorder.