Speaking yesterday to a national convention of business editors and writers, the Microsoft chairman seemed to confirm widespread industry speculation about the timing of the release, referring to plans to ship the console "this year."

The remark, apparently inadvertent, came as Gates talked about consumer adoption of high-definition displays, which Microsoft is incorporating into its strategy as it takes on market leader Sony Corp. and its dominant PlayStation franchise.

"What will the year of high-definition be?" Gates asked, rhetorically. He then answered the question by saying that it would be tempting to think of it as "this year, because we're going to ship this next Xbox."