A $99 Xbox 360 would affect sales of PS3 more than anything. Gamers unable to afford the Wii U, PS4, and Durango would want to choose between two large game libraries on PS3 and 360. Assuming Sony holds their PS3 price at or about $200 and greater, this would give 360 a dominant share of the last-gen market.

Also, if rumours are true and the new 360 is a backwards compatibility companion to Durango this will also push its sales up as 360 owners switching to Durango would probably be interested in it.

Nevertheless, this will extend the 360 at least another 2-3 years of life. A smart strategy for MS.

This wouldn't do anything to WiiU or the rest of next-gen this holiday.

It will only affect Wii and PS3 sales as only those consoles would be the potential buy for a consumer interested in this potential X360 mini device.

My guess is Sony is going to have no choice but to slash the PS3 price hard as well, probably $179.99 PS3 w/game bundled + HDD at a minimum this fall.

I'm gonna predict it actually 360 will be the no.1 selling console in North America this Christmas by a fairly large margin at that.

this wont hurt the wii u at all. people that own a 360 wont buy this. and this also means the 720 wont play 360 games

$500 is a bit too steep for a console unless the Launch games are promising like the new Batman

Ad. 1 - I think that Sony is absolutely ready to cut the price thanks to the redesign. $179.99 or even $149.99 for the 12 GB SKU is easily going to be profitable for them. These babies are sold for 150 Euro in Europe anyway.

Ad. 2 - What a bold prediction... X360 selling most consoles in NA... Wow, you sure like to take risk... :P I'm also going to make a prediction! 3DS is going to sell more than X360 in Japan this holiday! By a fairly large margin at that.