My opinion is it Wont Happen, I think the Ads they ran looking for an engineer to design a smaller board, is for the next gen, Just like Sony these companies have been working on new technology for there next console, not always but usually means smaller. even though this gen is going great, and it may last a little longer then expected by most, we will still see the new consoles in 2012, which is only 2 years away, so you better believe both Sony and MS are busting ass to build the next best thing for next gen.But I guess you never know I could be wrong, but I dont think so lol

The leaked picks for the new motherboard definetly are proof that a 360 slim is comming the board is made by the same company that makes all the previous boards for the 360 and its too small to be implemented on a 360 with the same size as the current model.

Well at the moment, I've got a firm "no" on the question, I mean, they've never done this before, whereas Sony have done it with each console, as well as their handheld.

I think, if this is going to happen, it's going to be after Natal is released, as, at the moment, it seems they're falling back on the idea that Natal will sell, and if this plan fails, they'll release a 360 Slim, in hopes that they can capture the lost market, and make the price more attractive and accessible to the casual userbase.

If anthing it will happen with the launch of project Natal because that would make a more interesting re lauch of a conosole that is what MS is aiming for with Natal anyway.

it would seem probable for them to have a redesign to go with natal for their relaunch this fall.