This isn't surprising. Sony and Microsoft are in no rush to release their next gen systems. Both of their consoles are doing well and the longer they're on the market the cheaper they become to make. As long as Nintendo is winning this generation Sony and Microsoft can just sit back if their hardware is selling.

And from a hardware specs perspective, you just need to add more memory to get better performance...developers can scale the performance of the game, depending on your specific iteration of 360.  More memory...more resolution, kinda deal.

more ram? they would have to do something like Sony. Require developers to only use a specific amount and use the rest for other areas of the system. Yes more ram would benefit games but it would alienate owners of the older systems if games end up requiring the console with more ram.

Right now in computer gaming...do you alienate gamers if you have more ram...no...just run the game at a lower resolution.  The current resolution of 360 games are great, but if a person wanted a prettier game, then they would have the option.  Anyway, it' just some ways to boost the lifesysle of 360, and kept it viable as a top-rated platform.

2015 with this strategy? why do people think 80 million is impossible?

oh let me guess

"4 years on the market (actually 3 years 7 months) and its barely sold 30 million (actually 30.40M) 2008 was the 360's peak year (despite 2009 tracking around 30% higher this year so far) price drops will do nothing now (a $99 360 is going to set sales soaring again) the 360 will be dead in 2011 (despite people in the industry stating otherwise)"

Something like that no?

I've thought was a while now that you may see home consoles generations being more like Handhelds, and slight "enhancements" being made instead of complete hardware replacements...

Definitely...I really think the military is going to be interested in this, to be honest.  Games like America's Army are attempts to improve on simulated training, and this fits the bill like you'd never believe.  You could integrate it with VR to provide some seriously realistic training scenarios.

What is next? RAM and Video card as upgrade accessories?

45nm chipset!

lol, I heard on PBS that the playstation 9 is supposed to be an interactive room that fully immerses you.. lol. How wrong they will be. (or will they?)

I think MS will support the xbox until 2012-2013, then third party games will be the main new releases left on it until 2015 when it will fizzle out quickly in favor of the next model.
I can't see the next gen. of system being more advanced graphically though. Well, not that much. We might end up getting slightly upwards of max crysis levels, so I don't know how they'll justify releasing a new system. Control of games is going to be the main thing, IMO.