The first XBOX shouldn't be used to guess the release of the 720 , it failed therfore it's life was cut short earlier than MS would have liked . I'm expecting a 2013/2014 release for the XBOX 720 .
Edit : i made this post a while ago
People have the belief that the 360 is profiting and recouping the billion of losses that MS made on R&D , Hardware Isssues , Advertising/Promotion , Price Cuts , Games exclusivivity etc. MS to date have never made a penny from their games division , their losses currently are around 3X's that of Sony's gaming divison.
- Releasing new consoles requires alot of R&D (which cost alot of money), you can't just assemble PC components together under a case in 2 months and pass it off as a console.
- Releasing a new console takes months if not years of strategic planning recruitment , development , production , getting developers to make new games. All of which require planning and huge expenditure.
- Promtions / Advertising for the XBOX 360 are probably in the hundreds of millions , MS will want that money back.
- MS will have to continue to pay for game exclusivity if the PS3 fares better than it this generation , MS has hardly any internal development resources in comparison to it's competitors.
- If HD downloads doesn't take of due to lack of popularity or competition then this is another reason for MS to drop out of the games division.
- MS really shoudln't try to diversify too much , they're loosing ground in their core markets to businesses like Google , Yahoo , Mozilla if they don't choose to drop gaming competition will force them into it.
- If MS rush into the market first with their 720 the consumer be scared whith RROD and other hardware issues that XBOX consoles have been famous for (even if they came in last it would still be a concern amongst customers) , if the 720 had anything nearly as serious as RROD i'm possitivie it would kill the XBOX brand reputation dead , MS would be wise to extensivley test the hardware or outsource the work to a hardware company which specialises in durable , quality hardware.
Sony has effectivley wiped out all the profit they made with the PS1 & PS2 combined with the release of the PS3 , however it's highly unlikely that they could have won the format war without out the PS3. The success of Blu Ray & Sony's HD TV's (which success will largley be attributed to the PS3) will determine whether the PS3 was a success or not.I'm pretty sure Sony will release the PS4 , but I dought they'll put as much emphasis on technological advancement and"all in one'ness" due to the success of the Wii , Sony will probably go for a decent price point , medium spec , mass market console.
The games industry is experiencing incredible growth so I wouldn't be suprised if MS released the 720 I just don't think it's a smart move for them to do so , they have their core businesses which are generating a profit for them (software) so I think diversifying into to the games industry may not be a smart move.
