http://www.computerandvideogames.com/341406/microsoft-to-release-xbox-lite-before-next-gen-console/

Microsoft will release a cheaper 'Xbox Lite' before its true next-generation console launches, it's been claimed.

Infamous Microsoft leaker MS Nerd suggests we'll see the new ARM-based Xbox 360 model launch in late 2013 at a around £100 / $100, with its next-gen console arriving "later".

"At some point after [the Xbox Lite], we'll see a Xbox Next, a true successor to the 360," it writes. "Details about it are very hazy, except that, like the 360, it will do games for core-audiences and the same media apps as the other device, also with Kinect."

The device sounds a lot like Xbox Loop, a codename previously rumoured to be in use internally at Microsoft for a smaller Kinect-focused product set to run on Windows 9.

The same source reported last year: "It will be cheaper than the 360, further enabling Kinect adoption. And it will be far smaller than the 360. It will also demonstrate how Windows Phone could possible implement Win9's dev platform on the lower end."

Microsoft's most recent comment on Xbox 360's as-yet-unannounced successor is that "there will be no talk of new Xbox hardware at E3 or anytime soon".

I could see this happening, a cheaper $100 Xbox for the casuals going alongside the big brother 720 for the hardcore. It would allow them to elongate the life of the 360 and introduce the 720 while keeping profits up.

hmm...
not a bad buiness move but don't really get the point. its a bit like a odd step. the PS3 will get cheaper and be filled with shovel stuff when PS4 comes out. same as the 360/720.. so basically its just another xbox slim

I would be interested in a 100 dollar 360. It would appease me until the ps4 is reasonably priced.

Very good battle plan I must say...

i think they are doing this to ensure that 360 sales will keep up with ps3's sales when the next generation starts so ps3 doesnt pass the 360 in sales ltd

You're right, they so give a shit about that.

The only ones who actually care about the ltd sales anymore are the fanboys and believers(Who have been believing since 2006). Although it's nice to see the sales, the novelty has worn off now, seeing as this gen is 7 years in now.

What would make it "lite"?
Is it just a name or is it supposed to mean something?

Anyway this is a bad idea. Release a new Xbox 360 so close to Xbox 720 will risk cannibalization. It will be confusing to consumers.

Example:
Little Kid: "Wait so which one is the new Xbox? The Lite or the Loop?"
Walmart Employee: Both are new! If you are poor you get the Lite!
Little Kid: Dad, are we poor?
Dad: No, son!
Kid: Then can I have the Xbox Loop? It only cost $399.
Dad: ......
Walmart: Sir? There's people waiting..
Dad: I'll take the Xbox Loop :(

Dumbest..rumour..ever..

then why else would they do it?

Microsoft said that they want the 360 to sell more hardware than PS3 when its all said and done..

Pretty much this.

There's a good chance the current exsisting X360 4GB models will be $100 as a standard late 2013 while probably still being profitable, so there's no need to suddenly introduce a "Xbox Lite".

As for the "real" X720/Next-Box" running on Windows 9, it's pretty unlikely, this would mean it would launch Q3-Q4 2014 at it's earliest as it takes at least 2 years to produce a new Windows OS version.

I'm calling extreme bogus on this one.