Chem- is my source. Apparently Nvidia and MS are going to be in court over contract discrepancies. And they stated that Xbox2 is going to be DYI project for MS.

I thought it was a bit faulty for them to do, because as you stated, it would be terribly costly.
Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.
-George Orwell