According to popular Japanese site Watch.impress, Microsoft had actually planned to release an updated version of Xbox, called Xbox 1.5, shortly after the original Xbox 1, and before the real next-generation Xbox. This Xbox 1.5 has the full hardware backward compatibility with Xbox 1, and has a better CPU/GPU. It can run both Xbox 1 softwares and better looking Xbox 1.5 softwares. Basically it breaks the 5-year cycle of game console and runs away from the competition by the absolute power.
Goto also writes back then he was confused by the info that what’s thought to be Xbox 1.5 would be the next-gen Xbox 2 rather than a mere upgraded version, so now he seem to have another evidence that what’s called Xbox 1.5 and the actual Xbox 360 are 2 different things. But he doesn’t know the reason why Xbox 1.5 was ditched and speculates because of this fluctuation Microsoft couldn’t get enough design time for Xbox 360.
Read the translated article [here] and lets hear your thoughts!