Also, by different variations, I think he just means colors, and advanced functionality. It is not going to be like a PC where the RAM, gpu, cpu, etc would be different or upgradeable. This one console would use the same basic hardware (cpu, gpu, ram, hard drive, one standard and one motion controller), but manufacturers could use their own design, cooling system, decide whether or not to include an optical drive (download all games), whether or not to add in multimedia functionality, etc.
With the exception of Nintendo who still only makes a small amount of profit per console sold, the consoles are not designed to be the money makers. Add-ons and software are where profits come from, and with one unified console with a 230+ million userbase that gives software developers a lot better chance of succeeding. Even if their game is a flop and only sells to 1% of the userbase, that is still 2.3 million copies sold (instead of just 300,000 had it been on just the 360 for example). Not to mention the development costs would be much lower so all software companies would have to sell less to remain profitable in the first place.
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