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It's a hoax. I'm looking, though I can't find it yet, some video game site had a list of console hoaxes. It included Xboy, an Apple system, and the hoax that the Revolution was going to be a VR helmet. There were 2 from Sega I think. One was a handheld and the other was the Sega Phoenix which is what your link is referring to. I did find this story from may 3rd, 2004 showing how old this rumor is. http://play.tm/story/3480 Note it says the rumors started recently, what day was just over a month before then? This story is a mention of it from last December showing the rumor is still alive if on life support. http://www.ps3fanboy.com/2006/12/11/sega-unveils-the-box-a-new-console-no-just-a-game One last story, this one claims the Phoenix will utilize a 3,900 GB disc format (take that BluRay) with a 128MB/s transfer rate. http://gamersreports.com/news/928/sega-sammy-developing-new-console/ Look at all those technical specs again and ask yourself if a company of Sega's means could afford all that.