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@Mummelmann We'll see a slim 360 first, possibly unveiled at Leipzig this year...

Considering the fact that MS is completely unable to deliver working product with the current XBox, what makes you think they can trim down the size, making thermal problems even more pronounced?

@Darmstr8 Since sony has found a way to make the blu-ray laser smaller amongst other things id say..

Sizing down the laser has no influence on the size of the PS3. There is no question that Sony engineers have been making  smaller sizes prototypes (and that the PS3 can be downsized, you gotta give them engineers something to do..). Going into production means investing in new tools, reprogramming and reassigning at least one assembly line from the current design to the new design. There is no need for Sony to risk those expenses. Maybe when competitors appear with smaller boxes and everybody thinks "Samller - this is the new buzzword"