PS3 is finished in North America confirmed.

In my opinion the 360 doesn't need to be smaller, it already is small enough. When I bought mine and took it out, I had to make sure it wasn't a Wii. The box made it look bigger than it really was. But if they can find a way to make a cheaper but EFFICIENT system, then bring it!

could make a slightly smaller 360, take away the memory cards slots, remove the disk drive and have a lid use a smaller size Hard drive, I don't really see it being worth the bother though, unless they go for visual candy and make it look very smart

I can actually see a lot of room in the box for shrinkage. Hell I see a lot of room for cost reduction. However I would like to say everyone is being narrow minded literally. In other words everyone is thinking that a redesign must be a slim model. When in fact it is far more practical for a new model to be a short model. In other words the reduction isn't in the width, but in the length.

I see no major hurdles for Microsoft merely cutting two inches off of the right end of the console, and moving the components there closer to the drive. There is already two inches of bare space in place on the console. You may even get more by reducing the footprints of both the power button, and the controller ports. They can even remove one of the memory card slots. Lets face it they are not terribly relevant these days with internal memory, and low cost hard drives. The reality is that with cooler boards the machine doesn't need to be as spread out as it once was.

Hey I call dibs on calling it the X360 short.

While I don't put (too) much emphasis behind rumours, we're hitting a point in the generation where advancement in semi-conductor technology should allow for all three manufacuters to produce smaller and more energy efficient consoles at a lower price. How much benefit there is primarily depends on who you ask though ...

Interesting. There have been X360 slim rumours in the past (some metal removed paper, etc), and I don't see why not...

Then again... new shells could be shells that house the X360 HW+Natal. What do you think? Smaller Hardware and Natal there, somewhere...

One thing I thought of was that they could move the hardrive slot to the top of the console (as it lies flat). It would look a bit odd but it could work. Or even more ridcolous, they could flip what I just said around and use a dual hardrive slot, one on each side to hold the Xbox 360 up. You would need two hardrives though to balance it.

Thanks <3

they need to slim it down a litttle bit to make a tolerable room for NATAL.

I just had a thought.

Did your bro actually say "smaller"?
if he didn't maybe he could have meant a bigger 360.

Xbox 360 with Natal built in?