In the article the analyst Richard Doherty predicts that 2003 might see a portable take on GameCube.

"A portable GameCube device would bring next-generation graphics to the portable market -- a market dominated by Nintendo with no competition from Sony or Microsoft," Doherty said.

We have printed the entire article below.

LOS ANGELES (The Hollywood Reporter) --- Now that the video game business has just wrapped a record year of sales, the industry's major players are preparing to unveil new products on the hardware front.

Nintendo (news - web sites), Sony and Microsoft all have hardware in the works that could be launched as early as May, during the annual E3 video game convention in Los Angeles.

The true next generation of hardware is pegged for a 2005 launch, with Microsoft planning Xbox (news - web sites) Next and Sony planning PlayStation 3. But 2003 might see a portable take on GameCube and cheaper variations of Xbox and PlayStation 2 (news - web sites), Envisioneering analyst Richard Doherty predicted.

"A portable GameCube device would bring next-generation graphics to the portable market -- a market dominated by Nintendo with no competition from Sony or Microsoft," Doherty said.

Doherty expects an Xbox 1.5 that will be cheaper to manufacture and will be a smaller, lighter version of the current Xbox. He said it will retail from $129-$149. Microsoft also might introduce a new combination Xbox-digital video recorder for about $199.

Sony is on the third generation of PlayStation hardware, and the company is expected to ship its second incarnation of PS2 this year.

"I believe you'll see the price of this PS2.5 drop as low as $99," Doherty said. And Sony is a TiVo (news - web sites) investor, which leads Doherty and others to think there's a combination TiVo-PS2 device in the works -- possibly a $149 add-on to "fit into the back bay of the PS2," Doherty said.

Microsoft co-founder Bill Gates (news - web sites), perhaps thinking that the PC market has peaked for now, and Sony, eager to expand its entertainment hardware empire, are each focused on the living room. PS2 already plays DVD movies and CDs, and Xbox now ships with DVD movie playback, an Ethernet card for broadband connectivity, a disk drive for storage and the ability to rip and listen to CDs. The next wave of hardware is expected to incorporate DVR technology, further positioning the game system as an entertainment hub.

Sony is working with IMB and Toshiba on a new chip, code-named "GRID," that will allow PS3 to connect to other consumer electronics devices and other PS3s via broadband to enhance its processing power. PS3 also is expected to ship with Ethernet connectivity and a disk drive and will feature an easier architecture for game developers to program.

Little is known about Xbox Next, other than that it will ship before PS3 and likely will include UltimateTV technology (DVR and TV Web surfing), and it could serve as a PC for the living room.

There's also the possibility that Sony and Microsoft will release two versions each of their systems: one devoted strictly to games and another with all the bells and whistles. Broadband connectivity will be at the center of all of these machines' functions.