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If this rumor is true, I was right about what MS would do with the Nextbox. They will go after the Nintendo crowd with a slightly more powerful machine then the WiiU, but with Kinect 2.0 being the selling point while maintaining Forza, Gears and Halo for the hardcore audience.

This rumor IMO, is good for Sony because it allows more room for the next Playstation to be more powerful (and show to it to the world with games from day 1) while not going crazy on price, and more alarming for Nintendo because they will have a direct competitor for the casual gamer, with a Kinect devise that will sell specially for those dance games that were a huge hit for Nintendo, and 3rd party games that will look better in the xbox 720 then the WiiU.

In the end all 3 next gen consoles will sell, and every gamer will be happy about what they have.