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One other thing I'd mention about the precedent of this happening:

Nintendo has had a great track record of breathing life into dead consoles with sweeping hardware revisions. They've done it twice: Once with the Gameboy/Gameboy Color, and another with the DS revisions which were decent sized overhauls. If MS does it right, we could essentially see the 360 break the typical sales peak at year 3, and maybe even peak at year 5 or 6 - a dream for Microsoft, really.



Back from the dead, I'm afraid.