Regardless of names, companies or time; I think there's one thing true about the article, the future generation of consoles will be a mix between Tivo or Sky with a console where you just download stuff.

I think that in a few years time discs will be redundant as they are an storage device that can't replace data as fast as SD cards or portable hard drives.

I can see a moment where people buy stuff from hot spots downloading the content on their mobiles with hard drives of 50 gig and then transfer them to their PLAY machines.

Just speculating.

/goes back to work

It seems like people always forget about pre-nintendo consoles.  The Atari 2600 outlasted both of those.

Also the Playstation was in production for 11 years.

I think of it not as a completely new system, just an xbox 360 with hugely updated technology. If it's true that is. The Xbox 360 will become the equivelent of the PS2 for Sony. It will be the value offering and the Nextbox would be the PS3 killer. Think all the games the Xbox 360 MAY not be able to handle + a few exclusive/PC ports that the PS3 cant handle + All multiplat games being rendered at 1080p@60 with 4-8xAA. It's all old-hat for a PC gamer.

Hardcore gamers are the ones that would update to the latest and greatest. Who wants to be stuck with the old technology? Microsoft may be a software company but they are also a Computer company, so more frequent updates are the way they do their business. 6 years is TOO long between consoles. You've lost the first few years due to it being too darn expensive with no games anyway so why not cut those out and get to the chase? IF you can buy 2-3 systems, you surely can afford to buy the latest system when it comes out. I argue that the problem is that Sony is a TV company. Too used to long model life. :)

Consider these things also:

1. Fast releases was how Nvidia BURIED 3dfx.
2. More frequent releases allow you to be more flexible to change to market demands and target new areas first.
3. It's not easy being the middle system. You're either not powerful enough or not cheap enough.
4. All is fair, it's not like Sony discontinued the PS2 when the PS3 was released now was it? Think of this in the same way.
5. An Xbox360 today is still just as good if the nextbox is released tomorrow. It's just that if you want a more powerful system the nextbox is better. The value of the 360 doesn't change at all.
6. Mistakes aren't so deadly. You don't have to lament mistakes for 6 years between consoles.
7.The latest and greatest gets all the press. IF the Xbox360 had one year and has done decently with RROD hanging over it. Think of how well the nextbox could do if it had TWO years to establish itself?
8. The PC is Microsofts greatest strength. Why not use it? Frequent releases mean that they can leverage TWO consoles and the PC platform to create a powerful synergy.

late 2009???? wtf??? already??? wow....PS3 graphics will look outdated then

the only people that would get on this s the early adopters..i mean if you had just bought a 360 your not going to shell out for more

The PS3 will just be hitting it's stride at this point. And by the way, discs being used as a media for software and video will be around for a lot longer than you may think...think the next 10+ years anyway.

No thanks - no physical media = FAIL (by my book)

I guess it's apparent that MS only sided with HD-DVD to add to consumer confusion to push downloadable content (no doubt through a system that MS controls).

Also, blu-ray quality downloaded media? I'll believe it when I see it.

I call BS on this. With developing games expenisve as they are now why would MS jump the gun and release a new system in such a short amount of time? Would the developers follow? Would the public follow? To me this says the MS knows the 360 is doomed and that they cant sell consoles unless they hype up halo, that is if this article is true, but its not.

"1. Fast releases was how Nvidia BURIED 3dfx. "

The difference is that all new games also worked on the old NVIDIA cards. New games won't work on the old 360 though. That's the difference PCs are a rapidly changing environment, consoles are a stable platform.

"More frequent releases allow you to be more flexible to change to market demands and target new areas first. "

Yes but since a really good game takes 2-3 years to develop 4year platform would be terrible.

"An Xbox360 today is still just as good if the nextbox is released tomorrow. "

No it isn't because new games wouldn't be developed for the old system.

"All is fair,"

Has nothing to do with fairness. The question is if it is a sound business decision and 2009 would be insane. So I do not believe it.

I can see a future with gaming over IP, but I just don't believe it is that close.  I feel like the communications guys are saying they could have it in place by 2009 or 2010.  I don't know that the feeling is reciprocated.  Plus bandwidths just aren't there in America yet. 

In response to a few things:

1.  Relatively few things transfer over business lines.  Look at the Sega line of consoles.  Too fast, industry wouldn't support it.  The biggest difference is that the graphics card business, you can make a profit by selling 100,000 cards if you plan it right.  There would be no game support for a console if it can't sell enough.  Additionally consoles have sold at losses to recover the profit through games.  If we start replacing consoles faster, expect to see the $800-$1000 prices that the 360 and PS3 should have cost.

2.  More flexible releases are what has kept the PC gamer market niche.  Console gamers love the ease.  Don't have to check specs, don't have to update.  Just go pick up a PS2 game and I know it'll work perfectly (or as good as coded).

3.  360 isn't a middle man.  They have the best online system and are the cheapest HD graphic entrant.  They may not have positioned themselves the best, but people forgave them giving up on the Xbox very quickly.  I don't know if that will happen with their next console if this is a trend.

5.  No an Xbox360 is not the same value if another console is released.  Part of the value is the next 2-3 years of new game releases.  I mean I bought a pentium 200 for $1900 back in the day.  I'd be lucky to get anybody to want it let alone give me something for it.