Yes, Microsoft are working on the Next XBox. Surprised?

[Tim_Duncan]

The next surprise from MS could simply be they give up on the gaming market.

They cut jobs and closed studios recently, they stopped announcing things and their other businesses are all in trouble (beaten by firefox / safari in web browsers, beaten by Ipod with Zune, losing market share to Open office with MS Office and so on...).

Gaming was never MS core business, I think it's quite clear for them now they won't be able to compete with Sony due to their lack of internal studios.

If they didn't manage to sell more with a console costing half the price of their competitor, it doesn't need rocket science to know that any PS3 price cut now would kill them.

MS blew loads of money to secure DLC, JRPG and timed exclusives, but it was in vain since the 360 is still outsold 5:1 by the PS3 in Japan and it's even outsold by the PS2 there. They never recouped their Xbox 1 losses, and shareholders are very unhappy right now.

My prediction : MS just lets the 360 die like they do this year by not announcing / buying anything. It will sell fine anyway due to being the cheapest console.