There won't be any sort of domination going on before the release of Natal. The reception of Natal is completely up in the air right now considering the lack of specific information that MS has released in regards to packaging/pricing and most importantly, software support.
We can skip the perfunctory listing of titles and exclusives for the first half+ of 2010 because all game platforms in 2010 have strong line ups with stand out titles that are "must buy" for their respective platforms.
It boils down to pricing and packaging for the Xbox as Fall begins to wind down. If MS significantly drops prices on their two main SKUs while simultaneously bundling Natal along with a true killer app with the broad appeal of Wii Sports, then the Xbox has the potential to see runaway sales for the holidays. Any sort of console hardware redesign would be primarily for the purpose of cutting costs by reducing materials in production, which is purely speculation anyway. Let's see the spy photos from a Chinese factory before making with the "Slim 360" rumors.
That is a lot of "ifs" not to say that this couldn't still happen.
Regardless, it wouldn't happen before the end of Q3 through Q4.
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