X360 will do better than Xbox at generation end. Microsoft jettisoned the Xbox because they screwed up their contracts, they basically bought commodity parts from Nvidia and Intel, meaning these companies could keep all the benifits of cost reduction and screw Microsoft over, as they couldn't go anywhere else for these parts. What that meant is that they were still losing money on each Xbox at the end of the last genration, and basically couldn't keep selling them. This time, Microsoft owns the designs on the CPU and GPU (and everything else), and simply license the production. Therefore, they get the benefits of cost reduction, and negotiation for manufacturing. They also know they can't do the same with the 360 or people will completely lose trust in the brand. A lot of people already have.
Help! I'm stuck in a forum signature!
