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montrealsoon said:

Here's another potential angle for the future: the Nintendo has had a far greater effect in disrupting SONY. So, if you were the financier of MS projects, would you want to pour more resources into a result that others are achieving for the company (for free)?

Hm, tough one. Yes, Nintendo is disrupting Sony's plans, but they're not going after the multimedia centre - they don't care about it. So Sony still has a chance to establish the PS3 as the future multimedia hub of choice. For this reason, I think MS will want to keep the X360 alive to take market share away from Sony. Either that, or sell it to someone who will do the same.