Neowin

With the next-generation Xbox's announcement just a day away, Microsoft is finalizing its presentations and announcements. One thing that won't be announced – if a report is accurate, at least – is a subsidized version of Microsoft's next console.

Paul Thurrott, who has broken much of the news about the next Xbox, says Microsoft won't offer a subscription-based version of the console that would subsidize its overall costs despite earlier rumors to the contrary. Thurrott previously said Microsoft was planning on providing two methods to purchase the console: a standard one-time cost of $499 or a cost subsidized through the requirement of a Xbox Live subscription that would include a one-time $299 purchase and monthly $15 rate for two years.

The latter method of purchasing the console has been scrapped, Thurrott said in a tweet, though he didn't clarify further. Thurrott's tweet also mentions that Microsoft Research's IllumiRoom project will be part of the presentation. 

A couple of Xbox news tidbits ahead of the launch... Illumiroom will be part of Tues event, subsidized Xbox v.Next model has been scrapped.

News of IllumiRoom's supposed appearance at the event follows a Sunday report from The Wall Street Journal that indicated Microsoft would include "specialized [3D] glasses" that would go along withtechnology that "blend images of the real world with that of a game." IllumiRoom works by projecting images across a room that work in conjunction with content that's displayed on a television.

Whether IllumiRoom will actually launch alongside the next-gen Xbox is unclear, as Microsoft previously called the project a "proof of concept," and several reports indicated it was relatively early in development.

Source: Paul Thurrott on Twitter

Lol, it's funny seeing this post in the other threads. 

i'd be surprised if MS reveals anything around pricing. too early, now is the time to reveal the features and not get bogged down with the dirty little details like having to pay for it lol. build the hype and leave nothing to criticize.

I'm sad that another gimmick will steal time from the show. Hopefully it's a long show.

erm im not sure thats how hype works, keeping info hidden away to one thread would be the opposite of hype to me. 

Id also be amazed if they showed price even at E3, Price is something both Sony and MS will be reluctant to reveal before the other.

I have to say id also be disapointed if they show too much illumiroom stuff, it would just be for hypes sake as theyve already stated its not going to be released anytime soon, its still very much an R&D project, i want to know what im gonna be able to get this yearearly next year.

Paul Thurrot again? The guy is usually pretty good but his Durango info has been all over the place. He's essentially covered all possible scenarios with his various 'leaks' to the point of whatever MS say, he has said something that matches.