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The whole concept is geared mostly toward North American youth and young adults, preferably males, so the sales stats should be no shocker neither to us nor Microsoft themselves.
Peter Moore actually used to say that this was a point that needed to be improved upon in the core design and overall image of the x-box.
I do expect another X-box, and I expect it to be very different from the 360 and X-box (those two are really the same, only with upgraded hardware and functions, much like the PS3 is really just a more powerful PS2 with added functions).