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Well at the moment, I've got a firm "no" on the question, I mean, they've never done this before, whereas Sony have done it with each console, as well as their handheld.

I think, if this is going to happen, it's going to be after Natal is released, as, at the moment, it seems they're falling back on the idea that Natal will sell, and if this plan fails, they'll release a 360 Slim, in hopes that they can capture the lost market, and make the price more attractive and accessible to the casual userbase.