this.

Who gives a crap about apples and oranges when there are grapefruits!

I totally agree about evolving the box in the way that has happened with the 360, new stuff but never at the expense of the user. But I don't think bringing a new hardware revision that can alienate old revisions will be a success, not with the sales Microsoft have seen so far. Either developers will simply ignore the added benefits from the revision (so they don't alienate potential users) or users who realize that they can't play games they want to play on their hardware will buy a competing product where they can play games without fearing that their hardware will become obsolete every other year.

If they're going to do biyearly revisions (or whenever) that add to the power and functionality of the system, they might as well go all out and make it a PC box. A Windows box! It's all coming together now!

Im not talking about a revision which adds little to the hardware experience. Consider this scenario:

In Q4 2012 they release a new console. Since 3D adoption is very small they decide not to give it major support at release due to cost and performance reasons, they instead decide to maximise 2D performance with weakened 3D performance for those who want it. 

2014/5: 3D technology is now cheap enough and user adoption is starting to get quite high. So they release a revision to the Xbox next which supports 3D fully at 1080P HD which gives the best user experience in 3D along with a few other features and they reduce the price of the original revision whilst discontinuing the Xbox 360.

How does this look bad? It gives people who want high performance 3D a console and it gives people who are satisfied with what they have a console at a lower price, it means people from both ends of the market can have a current console without having to rely on obsolete hardware.

Honestly if Microsoft were to release new models every year or two with added functionality and games that would play better on the newer units. I would stop buying X-Box and go back to being a Nintendo only guy. Sure with X-Box I have bought two model's since launch, mainly because my first unit RROD and while Microsoft fixed it I didn't want to have the problem again so I bought a slim.

Chances are if Nintendo releases a powerful enough console that gets good third party support I will probably hold off on the next X-Box for a year or so, wait for the hardware price to drop (MS drops prices fast). If they announce a new model with increased functionality and appear to plan on doing so on a regular basis, then I will put off on an X-Box purchase all together.

I think it may work in the short run to increase sales, but Microsoft would get bit in the butt. Look what happened to Sega, developers didn't like it and neither did consumers. Constant upgrading will not be tolerated in the console market. Look at the DS for example DS,DS:L,DSi,DSi:XL all the models offer slight upgrades but a game on DSi:XL will play just as good on DS. If Microsoft made future models have features that made games playable better on newer model's, consumers won't be happy. Essentially the X-Box would become a PC.

Gamers aren't going to shell out hundreds of dollars to see a new model come in a year demanding hundreds more, then another model the next year and so on. Apple's strategy would not work in the home console market, infact I doubt it would even work in the handheld console market.

It doesn't, I'm all for that, as long as they can do without alienating old users. If the 3D update is in the form of extra power that developers can tap into, making it exclusive to 3D would be the way to go, so developers can't utilize it in the 2D mode in a way that would stop users with old hardware from playing the game. Again, if they can add to without leaving anybody out (unlike iOS), then I'm all for it.

Cool.

It could also cover something like wireless HD virtual reality glasses etc. You might need an adaptor for the old model but the new one would have it built in, much the same as the Xbox 360 vs Xbox 360 S.

Totally disagree. Epic had a huge hand in the specs of the 360. And if Epic are to be believed in a recent interview with Eurogamer, then the same looks likely.

Commenting on the UE3 engine update at GDC 2011, they afformentioned next gen. MAybe slipping up saying they expect the next Xbox to have about 4 gb ram, multithreaded Quad core Cpu and above and a possible 3 GPU set up.

Something tells me, They are already working on a launch title for the next Xbox whilst showing M$ what they need to make that demo a reality in gameplay.