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JayWood2010 said:

From all of the rumors they are trying to do both.


But I don't really think you can do both and become successful ...

Basically, to duplicate the high performance strategy Microsoft would (probably) have to sell their system for $450 or $500, and to bundle Kinect 2 would result in $100 or $150 added to that. I could be wrong but I suspect the "XBox 720" would do far worse at $600 than the PS3 did, in a large part because of the difference in popularity of the XBox 360 compared to the PS2.