Why not ?

It can keeps living while the new console begins... but it wouldn't be too wise (look at the PS2-PS3).

I agree.  The 360s success this gen is largely due to their early releasal of the console, and beat the other two kids to the market... so I can only assume that they will go that route again, and try and be first in line.

Honestly no matter what their PR says, Sony is going to launch whenever MS does. They can't chance giving MS head start for second time. Especially since they've lost the mantle of market leader. As for Nintendo, I have no clue to be honest.

But they could keep PS3 alive as low end model, just like they are doing now with PS2, to avoid hurting and getting angry developers and to have an high profit margin revenue in the period PS4 will sell at very low profit or even at a loss (but I wouldn't expect anybody daring to lose anymore like PS3 or XB1).

I feel like there are always more rumors about the Nextbox 720 then there are for the other two bigs' next-gen machines (with the possible exception of wiiHD). From rumors of a next-gen Halo already in development, to stories about the x720 being forward compatible, it seems as if--even if these rumors are untrue--the R&D division at M$oft is hard at work on SOMETHING. Given there proclivity to take a head start on the competition, I would not be the least surprised to see a release in 2011 or 2012.

That said, the 360 will be heavily supported until well into the next-generation. Knowing microsoft, I also believe software updates comparable to the NXE will furthermore make the 360 a much different looking machine than it is today...

http://kotaku.com/5041835/rumor-gearbox-is-developing-halo-4-for-new-xbox

http://kotaku.com/5063787/rumor-next-xbox-to-be-forward-compatible

I think you are all missing the mark. I beleive the next gen consoles will be different from what we have seen before. I beleive we will see some kind of new hardware in 2011/2012 but it will not be another completely new console. I think it will be more like a updated system that will play new games better the the current gen but will have enhanced graphics and game play. I don't know the full story but I have heard some companies are working on a DVD system that enables 20GB on a normal DVD, like another lair of data so you would have DVD and then the enhanced part. Commadore did this is the late 80's with there systems, you had a tape and if you put the game in one system you would get basic graphics and sound, but if yiou had the 128 version it loaded better graphic and sound. This would have the transition between gens painless for both users, Software companies and hardware compaines. In the 80's it didn't really work but now a day games are writen with software tools, so would it be that hard to make two games from one original Idea. If anyone can do it then I think MS can as there dev tools are excelant.... Just my thought....

Ah, I see what you did there...

OT: I do think the 360 explosion will extend its life a bit. If the userbase is larger, it may have a better chance it will last longer (even after the next gen systems release). I don't think it will affect the release timing of Microsoft's next console, though.

There's a difference between the lifespan of a console and how long it takes for its successor to be released. The PS2 is still alive, even though the PS3 was released 2 years ago. It's hard to tell if the 360 buyers today are the type of people that will stick to it when it's aged, though.

The 360 life has certainly been extended....but can anything else substantial be squeezed out of the console?

@colonelstubbs

Thats a silly comment, how do we know what is being used at the moment. No games developer would use less then 100%. Don't listen to Sony fanboys saying that there games are only useing 30% of the system, because thats rubbish no developer would write a game and just use less then 100%. I understand that software can be made to run better over time, and this will be the case for both the PS3 and 360... Games will always get better untill dev move there focus to a new system...

No, developers are saying that they having learned enough about and from the console to utilize at its maximium effencienty.