I think it's a great idea to do a step up machine a la Nintendo concept Gamecube > Wii or DS > DSi.

Next Xbox should really be fully compatible with old 360 and run all 360 games but with faster processors, more ram and better storage option. New games will be scalable to run on either 360 or the 360NEXT with better graphics.

A new model so soon would not please third party developpers who have invested a lot of money in the Xbox360, so no... MS has to give them time to cash in.

He makes some very sound points, so too do some of the posts bad times world wide would make a new console unlikely. Having said that I posted a thread as to E3 possible nextbox. His main reason is microsoft and their Pc mind set if they have a leap foreward then they might bring it out but their new games would have to play on the 360 or a new console would be a PR disaster they may not recover from in console gaming.
The other main point he brings out it the chance that they have to leave sony behind this may fit into their long term goals if so they just might release but I personly doubt it as they would be to aware it may backfire.

It has definitely backfired for Sega in the past.

Exactly what I'm expecting. MS seem to release a new OS every 5 years whether we want one or not. why not consoles. Yes i know they pretty much have the OS market sewn up.

@Videogirl

yes and microsoft has already done this once they might not be forgiven twice.

Microsoft did not have the same scale of support from the whole industry like it has with 360...so no there was no forgiving done...the industry as a whole adapted better to the 360 than it did to the XBox...

I would not expect a new Xbox until the current one stops selling as well as it is.
Same goes for the Wii.