More Reliable hardware at launch. A MUST. Halo 4 at launch. Cheaper LIVE and possibly more exclusives taken from Sony. Thats all the tings i hope they dont do being a Sony fan.

Do you always make a 360 topic somehow related to the PS3?  If anything this would be like 7-uping the PS3 because this would be leaps ahead.  They already have 64GB and 128GB flash drives, which for games would truly show Flash memory's advantage in transfer rates.

Also, a recent update released about a week ago said that SSD prices will likely drop by half in the next year, so by 2012 I see no reason not to use a blazing fast SSD in the "NextBox".  Sure they can throw in a Blu-Ray drive if Blu-Ray is the mass market media format by then, but if you are using a Blu-Ray drive you can't fully install games to the hard drive because the size would be too big.  Flash drives would be simple, small, easy to swap, and blazing fast read speeds with 0 noise because there is no optical drive to spin.

Then, as one analyst said on ExtremeTech, it would be very simple for MS to create a CPU that has 6 cores and 12 threads (basically just like cramming 2 Xenon's together) or 12 cores and 24 threads, because this would exponentially increase the power of the system, ensure it is still very familiar and have the least learning curve (all developers currently use programming that scales to "n" number of threads anyway), and would make backwards compatibility with Xbox 360 a breeze.

And lastly just use a newer, more powerful GPU.  Quieter and more efficient cooling, and voila a perfect and powerful system with a max price of about $400 to build, yet easily 2-4x as powerful as the 360, which would be more than capable of playing Crysis at Enthusiast at 60FPS.  Really the only thing holding the 360 back from playing Crysis right now is the GPU, and even then the CryEngine 3 will look almost as good as Crysis and will run on 360/PS3 just fine.

RROD fixed and free online

No DRM. Half the games I bought from Xbox Live are reduced to demos on my new 360, even though I transferred licenses from my old Xbox 360. If I'm not online, I can't play full versions of GAMES I ALREADY BOUGHT. Hopefully, the 720 will have a better system in place.

Halo 4 at launch, Gears 3 launch window, and a rockband/GH at launch window will make the 720 win epicly for the first year of sales so long as they dont run out of supply.

Wafer and die cost projections

The forecasts discussed in the preceding sections combined with additional factors not discussed here lead us to forecast wafer and die costs. For 22 nm linewidths produced on 300 mm wafers in 2012, we forecast a wafer cost of ~$9000, resulting in a quadruple-core Pentium 4t die cost of ~$16. For 22 nm linewidths produced on 450 mm wafers in 2012, we forecast a wafer cost of ~$13,000, resulting in a quadruple-core Pentium 4t die cost of ~$10.

http://www.semiconductor.net/article/CA632496.html

The same applies for Flash as well, the cost would drop ~40% per chip on top of the increases in production due to switching to 34nm and then 2xnm flash and beyond.

The advantage with using an SSD format on a console is that they don't have to fit a controller on the actual flash game. Its cheaper to integrate the flash controller inside the console itself. Furthermore they can package the console smaller, save the $20 cost on the optical drive, save $35 on not having to use a standardised HDD, save $5 on warranty repairs on average and make money on the hardware at launch to offset the increased cost of media.

The RV740on 40nm is already 3-4* more powerful than the Xenos. Its also about the same thermals as well and about the same size. By next year they will be able to install a GPU which is alone more than 5* more powerful on the same die area used now on consoles which cost $200. They could easily sell the Arcade for $250 sans HDD/Optical drive and make $50 profit on the unit itself and sell the Premium for $350 with a large high speed/capacity HDD and again make a profit on the unit itself.

Alan Wake 2, Halo 4, Mass Effect 3, Fable 3, Tales of Vesperia 2, Half-life 3, Braid 2, Ninja Gaiden 3, bioshock 3 all at launch.

I want X720 to get Elder Scrolls 5 as exclusive.

And I want it to have very powerful hardware despite launching first in the gen, just like the X360. The X360 is extremely powerful for being so old. Never has a console been stronger at launch.

And $399 launch price again, but only one SKU.

Real simple.

I want developers that know the 360 to be able to get up to speed and take advantage of the extra power faster than ever before by a long shot.

Reliable Hardware; PC integration/cross platform compatibility w. DX11; no motion control as standard (accessory by all means but standard will mean I will not buy it); 4 GHz RAM; enhanced Intel processor (Larabee?) Unified CGPU.