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That deal no longer exists. Personally I'm (wishfully) thinking that they will stick with the Xbox as they've just built a funky new engine and they'll want to use it as much as possible before having to start from scratch with the Xbox 2. Add on top of that Lorne's statement that he doesn't want to work on games for a console that has not yet been released and I think its a pretty safe assumption that at least the next game will be on the Xbox.
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I hope to God, Stranger 2 is on the Xbox. Perhaps the soon-to-be-released Xbox 2 was another factor for Oddworld shifting their development of Stranger to January? Are they planning on releasing another game in time for Christmas 2005, and subsequently, when the Xbox 2 is launched?
Alcar...