Microsoft is Determined to Hand Next-Gen to Sony; 6 Months Behind on 'Nextbox' Production

In another stunning report that further solidifies Microsoft's downward spiral in the build-up to the next-gen console war, sources told Kotaku today that Microsoft an exciting exclusive possibly lined up; but that's about all they have.

We've heard from other sources that Microsoft is not where they want to be at this point in the pre-launch development of Durango. A reliable source—one who was not part of our reporting about the Respawn game—tells us that Microsoft is as much as six months behind in producing content for the new console, despite an expected late-2013 launch. Another tells us that Microsoft recently cancelled several internal next-gen projects because they were not coming together as hoped. These sources have told us that, comparatively, Sony is in better shape and further along with hardware and software development for PlayStation 4.

Yikes. That's not all though, Kotaku went on...

We'd also heard from an industry insider that Microsoft was aggressively trying to sign exclusive games for Durango. Given the lack of internal development at Microsoft—their internal studios, while talented, are outnumbered by those of Sony and Nintendo—and given some of the apparent recent stumbles and slowdowns internally, signing an exclusive Respawn-EA game would suit the Durango quite well.

Between it's rumored "always online" functionality, it's money sucking X-Box Live membership, and almost no exclusives, it was also strongly hinted by many that the next X-Box would also be a more focused entertainment centre than an actual gaming console.

Even if you don't care for Nintendo or the Wii U, it's a sad time when even Nintendo might be doing something.

Expect more details during Microsoft's "Reveal Event" set to air online May 21 at 1:00 p.m. ET.