According to DigiTimes sources, Microsoft increased the allowable hard drive capacity for netbooks running Windows XP. Originally set at 80GB, Microsoft will now allow hard drives as large as 160GB.
Micro-Star International (MSI) and ASUS have already announced new netbook models that will sport 160GB hard drives. MSI will offer a new Wind model priced at less than USD$600 and ASUS will offer the Eee PC 1000H (also expected under USD$600).
The same sources do not expect Intel to ease restrictions around display size. With an 85 percent marketshare of the notebook business, Intel wants to keep a clear distinction between its Centrino and Atom platforms distinct and prevent overlap of the two.