Well, hopefully Microsoft does release a slim. If they do it would make sense to do it on the 18th and drop the price by at least another 50$. They can use the GDC to bring in some sales.

Alright, anyone who actually believes this--seriously, there are somany things wrong here:

1. MS has a great year of games ahead of them (possibly not as big as Sony's, but big)
2. If they WERE exiting the console business, they would announce it themselves and try to put some type of positive PR spin on it. It wouldn't just happen.
3. The Xbox is still perfoming very respectably. Yes, PS3 has outsold it slightly for the last 2 months, which is great for Sony, but it seems many have forgotten that Microsoft 'won' the other eleven months of last year.

Sheesh...

 I would laugh my ass off followed by going and crying in a corner "First Sega now Microsoft nnnooooo"!

Then writing a pissed off letter to Microsoft about how I wasted 600$ buying their discontinued console. Probubly with the same result I got from Sega over DreamCast. 

Lastly of course I'd turn on my Nintendo Wii and hope for the best next generation. 

Shortages on their own might be a good indication that a new SKU is coming out soon.

I think they will probably keep the Arcade and add another "Pro" SKU. Maybe they will announce it next week during GDC, after all some dude from Microsoft is giving one of the keynotes (I'm passing both keynotes this year, they both suck).

I die a little inside when retards who don't know crap about videogames say microsoft is leaving, and sony "beat" microsoft in NA.

BS, I say, sony needs another 6 million consoles to catch up, so sony won't beat MS in NA. So sony fans, suck it.