Rumor has been spreading over the past several months that Microsoft is building an expansion device called HomeStation for the Xbox. Microsoft has now denied the product's existance and claims it is nothing short of fiction. TeamXbox writes:

HomeStation rumors were sparked last September by a report in PC Format magazine that such a device would cross the Xbox with a PC and boast a bigger hard drive, audio and video technology and a wireless connection.

HomeStation talk resurfaced earlier in January as one analyst said he could confirm the existence of the machine in Microsoft and that it could debut later this year.

This reared its head several weeks ago. The odd thing is there is no thing called the HomeStation product or initiative, Microsoft spokeswoman Erin Brewer said.

Microsoft was interested in some of the longer-term ideas, but there's no product called that, Brewer said.

This is disappointing to some and relieving to others. It would have been nice to have the power and feature boost, but then again some would have felt pressured to purchase the potential Xbox upgrade. Check out TeamXbox's story for more details.