I can't see an XBOX coming out before 2013 unless Microsoft wants to completley destroy consumer confidence in the longevity of the XBOX consoles.

8-10 year plan is the best way to maximise profits from a generation , MS couldn't possibly profit from the 360 if they release 720 in 3 years.

That's the most ridiculous statement I've seen in a long time.  The going rate for consoles is 5 years.  Does anyone have to live hard and fast by that rule?  Certainly not.  But Sony saying that the PS3 is going to last for 10 years is just their way of covering for the slow start it's had, and I think MS will take advantage of that. 

Whether you love Microsoft or hate them, you have to admit they are no dummies.  They got where they are today because they are a shrewd business.  They take no prisoners.  When they feel the 360 has run its course, they will release a new Xbox and I'm guessing people will buy it.  MS is profiting from the 360 RIGHT NOW, so in some ways they are absolutely sitting pretty.  Yes, the PS3 will probably pass them up at some point in sales, but the Xbox brand is now a MAJOR contender in the console business and they're giving Sony a run for their money.

it won't be a huge upgrade, probably a minor upgrade on cpu, gpu and memory to boost 1080P at a lockon 60fps with a cool price tag of sub $300???