Computer and Video Games is reporting that the Xbox 2, code-named Xenon but referred to some as Xbox Next, may lose the small black and white buttons from its controller. Apparently some studies they've done show these buttons are hard to find and little used.
Quick reality check: no kidding. How anybody could not know those buttons were going to be hard to find and little used, given their size and placement is beyond me. They were there in case games needed more controls than could be provided by the two sticks, two triggers, and standard diamond of buttons. So taking them out, just because some games don't need them and they're outside the normal set of controls just seems silly.
Unless, of coures, this is another cost-saving measure. You know, plastic is getting expensive these days. The article also mentions that the console is expected to be first shown at GDC next month. Microsoft UK would not comment on this "rumor", according to the CVG article.