Not for MS.  Really it wouldn't surprise me all if Xbox 3 releases holiday 2009.

The article, I believe

Will it be debuted in 2 days. No.

IF it happens it's no surprise to me. I hope they do it so that I can laugh, laugh, and laugh some more at M$. If it happens then they will really have to spit out cash in order to get devs for that console other than their first party devs, cause I think such an announcement would turn dev's away.

From what that article says, it could be a new style 360 (one with better cooling, replaceable HD, BD, whatever).

There is nothing in that article that states they mean the successor to the 360.

"Future prototype" can mean anything.

Yay and now they can have several years head start :P... I thought making mistakes was supposed too teach us not to do them again....

Devs will make games for any MS console. Most games will come out on both the Sony Console, and the PC. The work required to make a PC game work on a MS console is very small. I am sure they will spend the money.

Don't expect any 3rd party exclusives however.

The only thing that has kept MS in the market, was a 1 year head start. it was no mistake.

Calling it Project Phoenix is interesting since it suggests they consider the 360 a failure.

Sure but this is too soon if true I hope its not…

 The biggest obstacle to future 360 sales is the stigma of the RROD.  Even if it is now a thing of the past, there are many people who either don't know it's a thing of the past or aren't willing to take the gamble.  I will personally never buy one unless it's at the end of the generation for about $100.  The only way for MS to get rid of that stigma is to start fresh.