This is just a rumor at this point and no idea if it turns out to be true if it will be only for Xbox and not for Xbox 360 (much more compelling if it’s for both).

Daniel Terdiman’s blog post at CNET:

… at the Game Developers Conference here today, the rumor is that Microsoft plans on announcing tomorrow a developers kit that would make it possible for anyone to build games for the console, or for PCs, and that the kit will cost only about $100.

If this actually happens and the kit isn’t completely handicapped it’s a really smart marketing move. It could bring back the games of yesterday and open up a marketplace on Live for smaller games developers to create entertainment (and revenue). I mused back in November 2005 that it would be exciting and a little like 1980-1985 all over again if the field was more wide open for smaller game developers. I believe that you’ll see some innovation from smaller developers that isn’t possible for the bigger ones who have to spent millions making games and can’t affort to take the risks that smaller publishers can do with a download only marketplace and not as involved graphics/gameplay elements requiring teams of artists, actors and programmers.

This could also be the move that knocks Sony off their pedestal because the word is now that the PS3 won’t be coming out until 4th quarter 2006. This gives Microsoft plenty of time to ramp up and fix the Xbox 360 supply issues, which BTW, I still haven’t been able to see on any retail store shelf a mere 45 minutes south of Microsoft’s Redmond campus. I haven’t been camping overnight or showing up the day the shipments come in so I’m sure there have been more opportunities to bag one now than there were prior to Christmas. I also noticed the Hmm poll, totally unscientific, still has 67% of the respondents either ‘undecided’ or with ‘no plans to buy.’ I’m not in either of those categories. I fully intend to buy one the minute I see it available on local retail shelves. We’re getting near the time I predicted I’d find one on store shelves here (end of March, April) so don’t be surprised if you see me going Xbox 360 gaga soon.

As for the Xbox developer kit, If/when this is officially confirmed, somebody please point me to it.

• Create and deploy your own Xbox 360 games with XNA Game Studio Express launch
• [11 pictures] Unpacking and running the Xbox 360 premium bundle for the first time
• Develop for Xbox 360 for only $99 a year, oh yeah
• Xbox 360 vs. PS3 same game title graphics comparison
• XBox sweetens the hardware deal for the holidays
• No saved game transfer from Xbox to Xbox 360