http://www.neogaf.com/forum/showthread.php?t=536163

Sounds MS could be prepping a 360 redesign (Stingray) for $99.99.

Now the 720 sounds expensive ($500/$300 with XBox Live sub), but this new 360 could really screw the Wii U the way I see it. 

They mostly have the same games already (third party wise, except the 360 has a ton more) and similar visual capabilities, but the 360 has a far bigger library, tons of cheap games, and better third party support.

If true, the Wii U would have to drop to $249.99 at least this fall, and even that is still looking very expensive by comparision. PS4/720 are kinda their own market the way I see it in a different pricing range aimed at hardcore gamers almost exclusively off the bat.

Xbox wont sell much more honestly, its in the final stage, top games wont be coming in 2014. Unlike WiiU, which has a bright future from 2014 on.

360/PS3 will be supported heavily by third parties through 2015 at least IMO. There won't be one third party who makes an exclusive big Wii U game without a PS3/360 version (see: Rayman) unless its something primarily for the Japanese market.

Too big of an audience to ignore.

Interesting. That would be a significant price reduction. $99 sounds too cheap though. I wonder if they'll give a free Xbox 360 with a 2 year live contract of $15 a month?

Well the last couple of weeks has seen Wii U close in on weekly 360 sales, and this is only with a few B release games. So when Mario Kart, Zelda and co hit, i dont see the 360 as a big threat to Wii U.

I think it would really, really badly damage the Wii U with the kids/family market Nintendo usually leans on.

The price gap for similar-ish hardware and the 360 having the advantage on the software side would be ridiculously lop sided.

Mario Kart really isn't going to fix everything. Neither is Zelda, not that that one matters much as it's probably not coming anytime soon. Nintendo needs something that equals the impact of Wii Sports, but is *new* (not another Wii Sports sequel).

'[I don't think that's even a possibility considering how many people use Xbox LIVE... You're not going to have this mass Xbox audience jumping to Sony.]"

LOL. What's so special about Xbox Live? It's just a network. The fact that it is a paid service doesn't mean people are loyal to it....friends lists are easily replaced. Jumping from Xbox Live to free PSN is not the end of the world for most people.

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That $99 Xbox is REALLY good idea, but makes that current $99 Xbox w/ 2 year contract seem like even more of a rip off. If Microsoft will really release this XBox 360 at that price point, I expect another PS3 redesign from Sony. Maybe a $150 Super Slim w/ 12GB flash using that 22nm/28nm Cell/RSX. I think for these low-priced consoles to have any sort of an impact, they need to be released this summer.

There's already a $199 arcade model. A redesigned Xbox at $99 seems entirely possible to be sold at a profit.

I could maybe see a new 360 model with an extra 512MB of DDR3 RAM added maybe for OS functions, much like the DSi had over the regular DS/DS Lite models. Another shrink on the chip, smaller casing, etc.