@ I just realised something really alarming , we haven't got alot to improve on beyond HD graphics , XBL and PSN.

Unless MS or Sony does something revolutionary I don't think they should bother releasing another console , it'll basicly be a Nerfed PC.

Microsoft need to get Fable 2 out soon i think before Gears 2 and they should be fine.

 A few things I think you forgot to take into account in this thread Rocketpig.

One is Sony owns Blu-ray. It's not MS's choice if they have it for there next console, it's Sony's.

Two, is the 300-400 next xbox does not need to worry about the PS3 or the 360, they need to worry about the PS4. If it comes out 10 times more capable then the PS3, and yet is less capable then the PS4, they are in trouble.

The PS4 is in much better shape then the xbox3. The PS3 continues to build quality libraries for the Cell, and the CELL is designed to scale beautifully.  The Cell will also be small and cheap by the time the PS4 comes around. The PS4 could have a gig or two of ram, three CELL's, BD, and cost $299.

The PPC in the 360 is all but dead. MS will have to find a new solution for the next console. That will effect backwards compatibility (something the PS4 will do with ease), and they will need to create new tools for whatever solution they use (that cost money).

Lastly, the next xbox has to be the most reliable piece of consumer electronics ever made. That won't be cheap either.

MS has put themselves in a place where the future looks very very strong for the competition, and MS currently has no answers.

When Japan attacked Peal Harbor, the leader of there military (A man who didn't want to do it) said "I fear all we have done is awoke a sleeping giant". I think MS just returned the favor. They woke up Sony, and now Sony has a very strong 10 years ahead of it with respect to console gaming.

Sony has to allow MS to use Blu-ray. If they don't, Microsoft's angry hoarde of lawyers will rip them to shreds. Besides, Sony wants the licensing money.

The PS4 is definitely a consideration for the upcoming Xbox.

I disagree that the Cell is somehow better suited to scaling. After all, both the Xenon and Cell are based on the same architecture. MS could simply have IBM add more cores and call it a day. Or they'll use the Power6 platform (currently using Power5). Either way, it's still PPC architecture. PPC isn't going anywhere as long as the Cell exists.

The next Xbox better be fuckin' bulletproof. I completely agree there.

I don't think that Sony is allowed to sell Blue-Ray to companies
but exclude microsoft

I  think you are making a lot of sense.

MS Entertainment Division needs  to show MS  it is a viable business, and  360 needs to  show consumers it offers to the full range of customers.  Sticking with 360 as the years go by and as they can drop the retail price will let other market segments afford to experiment with 360 purchases.

The 360 *is* the Gamecube of this generation, and that shouldn't be considered a bad thing (hey, look what happened to 'two Gamecubes duct taped together...").  The real question at this point is how much wisdom does MS have about the long term future... 

Having said that, I think 2010 is a little early...

Nope. Instant anti-trust suit. And nobody knows more about anti-trust lawsuits than Microsoft.

The Blu-Ray adoption is not Sonys decision. Its the decision of the Blu-Ray Disc Association, made of 18 board members. Go read it on Wikipedia. In fact, Microsoft can pay to be on that board and thereby getting licensing fees of its own no?

These companies don't act like fanboys (which is what the above response would be).

Don't agree?  Toshiba and SONY partnered with CELL, but competed with the DVD successor.

 "No hard feelings; give it all your best shot!"

I am sure Sony would love to have BD in the next xbox, but I bet at a cost MS is unwilling to pay.

As for the putting more PPC's into it, the biggest issue with the 360 as it stands now is heat. To keep up with 3 CELL's, you would need at least 9 PPC's. (if you say both the PS3 and 360 are the same speed, and I personally think the CELL is faster then the Xenon.)

As for scaling, the PS3, by design, forces developers to distribute there code. The philosophy when the CELL was designed was to use the PPC as mainly a controller, and do all the real work in the SPE's. I think as time goes on, and libraries mature, this will be the norm. If that becomes the norm, 10 CELL's = 10 times the processing power. It's a 1:1 gain (well, 1:0.9, but let's not get too technical).

The Xenon is three general purpose CPU's, and the developers are left to do with them however they feel. The code (more importantly, the libraries) of the 360 do not lend themselves to scalability like the CELL, because they don't have to. If you put 10 Xenon's in a system, you would not get 10 times the usable power. While technically there is 10 times the processing power, the nature in which you try to utilize it is more cumbersome.

 Besides, it's a moot point, as they will not just put more in the next xbox. power consumption and heat (kind of the same thing) will keep them from doing it. 

They might go with a multi core Power6 solution, but that will cost more money then what the PS4 will cost, and generate a lot of heat as well.

It will be interesting to see what MS comes up with. They might go the way of the Wii if they really do stick to the DL concept.