It was said that it will even beat the gaming industry leader, Sony. It will be set for exclusive preview on May 12, Channel MTV.
Gates said:
that the newest version of the Xbox, code-named Xenon, would have features that will make the device a more versatile tool for games, music, video and pictures in the living room. The new console will let video-game players chat with their buddies, know when others are present online, and retrieve their music and photos on their consoles in an interface already familiar to them
[Source]