By the time come, 720 already coming out .

 No it will not. They are starting to get a big marketshare and sell a ton of software,they will not destroy that with a new console. And the software tools in 2007 will be in games like Alan Wake in 2009,so the games in 2010-2011 will have these new software tools.

Anyway,the 360 will still be around when the next Xbox hits the market,just like the ps2 is now.

Hm. Lots of new and improved hardware features, but no value changes. While this may well upgrade what the 360 is capable of, will it actually draw in many new users? I'd posit that no, it will not. Most of the users who are likely to appreciate the upgrade as it is instead of after something is made to fully utilize it already have a 360, after all. I'm sure many of those features have been requested by existing 360 developers, as well, but what about developers who do not want to work with the 360? I have this sneaking suspicion that it won't be drawing many of them, either.

In short, this strikes me more as an incremental upgrade to maintain market presence than a truly value-driven upgrade to expand market presence. Perhaps that's what they want, and if so, I think it will do alright at that.

LOL.  I think it is just something M$ is doing to make development easier and faster for their platform, in order to help make content better and bring more content faster.

Exactly... delaying games or having a very big coding team/expensive coders ( ps3 ) is not good for bussiness.

trolling much eh?.

too bad the game is official now and its all running on the ps3 ;)

Actually, I happen to agree that this is largely targeted at decreasing development time. My concern is that it won't actually change what is being developed, meaning that the actual impact will ultimately be minimal.