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I think it would be a great idea as long as they learn from Sega. Sega's mistake was that they released Saturn with very little backing. It pissed off retailers that didn't know about the launch, 3rd parties didn't know about it, and it gave Sony time to react by releasing the PS at a cheaper price.

If Microsoft let all retailers and 3rd parties know about this plan in advance and actually had good launch games then it could work very well. Unlike with the PS, Sony wouldn't be able to react price-wise because of their financial state. It would allow Durango to get a good 3-5 month head start on Orbis in the U.S. Also, if rumors are true about Orbis not making 2013 in Europe...that could be a huge 9 month or so advantage there.