A recent report in the Puget Sound Business Journal contains a quote from David Hufford, a product manager in Microsoft's Xbox group, acknowledging that Half-Life 2 won't be released for the Xbox as was previously announced. The lengthy article discusses the ongoing battle between Microsoft and Sony, and after mentioning that EA has no plans to incorporate Xbox Live functionality into its sports games and that Halo 2 won't be available until March next year, it states quite matter-of-factly that the future of Half-Life 2--which we voted our Game of Show after returning from E3 this year--on the Xbox is, at best, in doubt.
"As of now, Half-Life 2 is not going to be on the Xbox," said Hufford. "Valve is sending us mixed messages on that."
We'll bring you more information on this story as it develops.