Not sure if this has been a thread already, but I say they should for one simple reason: As long as it stays working, it would give a fresh start in their reliability reputation.

It doesn't matter how much the system now works, there is still the breakdown stigma, that still keeps some customers away, particuluarly in Japan.

Now there is the issue of fitting the HDD, but I would just have it the new model have a dock on the top (as in the top when it's horizontal), that's a little sunken in. If the new model is stilm enough, it would effectively be no thicker than the current 360.

A 360 slim would be nice. At the very least it could be a bit smaller and get rid of the power brick.

The difference between Sony and M$ is that Sony are a hardware manufacturer first and foremost, M$ are a software company, so designing hardware is probably going to be more expensive, because they don't have full time staff, so it is not as practical as a designing a PS3 slim.

Ignoring that side of things, I certainly think that it is a good idea, and maybe a re branding too to freshen things up..

I thought it was a fact..But then I think they would need to increase its price.

They have had a hardware division since the original Xbox, so they do have people for this.

No the current Xbox 360 is fine, Natal will be a success with major ads.

I think a redesigning of the 360 would be a great thing!  I would definitely buy another 360 if they redesigned it and it came with natal.

Here's hoping!!

E3 2010... owned for all fanboy (sony)... stick it.

Whaaaa?

Rebranding yes, but why also go for a slim design? Can't they go like for a graffiti version, a new stylized version, or something completely new and exciting. Copying the Sony pattern might not prove to be so hot. After all PS3 Slim sells so well largely because of the price cut and the great features it maintained.