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shams said:
You guys are missing the point.

If this is *backwards* compatible - and if it contains the same CPU, same architecture - just souped up - its basically an enhanced 360.

MS are overdue on a 360-slim - we also know that the 360 still suffers from bad architecture in general.

If MS can make this happen, and at a near-Wii pricepoint - it would be huge. It would also be the perfect way to launch NATAL. NATAL on its own might take 1-2 cores and a heap of RAM - so give half the machine to NATAL, and the other half to run games.

They really do seem hell-bent on hurting Sony - this would go a long way towards doing so.

NATAL only-software would run on NATAL-only hardware anyway - so why not bundle the controller with an updated console?

It also means they could slash the price of existing 360 models - making a lot of gamers very happy.

...

Not saying its true, just saying that it sounds possible to me. It would be aimed at the Wii-market, and launch with a Rare developed Wii-Sports rip-off (or similar).

Only thing that seems 'odd' is the choice of a SSD rather than hard disk... wonder why? SSD makes much more sense for a portable device than a console.

Shams, you are missing the point:

1-  Casuals aren't bored with the Wii, and  they're not of the "Ooh shiny" variety like gamers are. They could advertise Natal and this propsed "upgrade" until they're blue in the face, casuals who own Wii systems aren't going to bite. The likely response from this crowd will be "$200? For another game system? That's airfare to Florida right there. My Wii good enough, thanks."

2- Going on that, Nintendo isn't going to sit idly by, and instead be continuing to impress their customers with more interesting products. Every other person has dismissed that fact that Ubisoft is coming out with a motion camera for the Wii in 2009. This will further confuse the casual gamer to see what the big deal is over another gaming system a year later on.

Basically the only way this can be huge, as you say, is if the current 360 fans go out and buy the new version. Ps3 fans will continue to resist, being the loyal fanbase that they are. Ultimately, the news only delays my 360 purchase to a wait-and-see approach. If I was going to drop money on a 360 for $300, I'm sure as hell going to wait and see if there's any truth to this news, to get a more powerful 360 next year, if it happens.