Microsoft has already stated it is treating its motion-sensing Project Natal peripheral as a new console launch, so that probably will keep the Xbox 360 alive for at least another year.
While we don't see anything wrong with Xbox 360's game quality (for every disappointing FFXIII there's a Bayonetta), you can't deny the console feels like it's lost a little momentum. Natal will aim to pick that back up, but unless everyone feels like waving their arms around or pretending to steer a car like they're six, we're going to need something else soon - if only to keep up with PC gaming which never stops marching onwards.
Above: Project Natal carries many hopes on its shoulders
Xbox 360 Slim
We've had dodgy photos of slim motherboards from China (just as we did with PS3 Slim and turned out to be true) but that's not the only suggestion that a Slim 360 is on the horizon. While newer iterations of the 360 hardware such as the Jasper HDMI models have cut down on the Red Ring of Death issue, it would be a lot simpler to just do it again and get it right now that the console's components can be miniaturised cheaply enough.
Above: Xbox 360 Slim? Nah, it's the inside of your vacuum cleaner
The advent of Project Natal is the perfect opportunity to reinvent the console with a slim version - which would undoubtedly fly off the shelves. Imagine - Project Natal, Slim 360, no chance of a RRoD, cheaper price... it would sell like hot cakes.
Incidentally, has anyone ever tried selling hot cakes? Much success?
Hit the next page for Sony's prospects and more Nintendo