Personally, I think the rumors of Microsoft including an advanced version of Kinect in the 'XBox 720' are more believable than the ones about Microsoft producing a dramatically more advanced system than the Wii U; and I think combining the two is completely unrealistic.
Between the success of the Wii and the success of Kinect I think Microsoft has (probably) realized that targeting the top 5% most hardcore gamers is not the path to high sales in the console gaming market. I'm not saying they'll abandon the hardcore, but I expect they will want to have features and a price that is more appealing to the mainstream consumer than the XBox 360 had. In other words, I expect Microsoft would choose a system that was 1/2 as powerful but included Kinect than a more powerful system; and they would rather sell a system that was 1/2 as powerful and sold at $400 than a system that was more powerful and sold for $500.







