There's a few things within Microsoft's power they can do to help generate a new 'lease on life' for the 360, whether or not they're deemed economically feasible/in the best interests for the company could be another thing.
For example they could release a new sku with an internal BD and undercut the cheapest Playstation sku with it. They could release a motion controller and a new range of games to utilise it - call it 'Xbox Active' or 'Xbox Kids'. They could add more services/features to Live such as IPTV or add the Zune marketplace so you can download songs or even add Skype so you can utilise the headset and Vision camera to talk to people on their computers...one of these features probably isn't enough to sway someone, but collectively??
Along with the obvious 'slim' model release and price cut effects - I think if they can get the premium 'slim' model down to the PS2-like price of $129 at the end of it's life then that should keep sales steady as long as the software support is there, well into the successor's life. The hugely growing revenue generated from LIVE subscriptions and content downloads should prolong it's life as well.
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