StingingVelvet: Is there any real competition in the set-top box that does literally EVERYTHING genre? If they release a slightly more powerful Xbox 360 with a great OS and great digital support, the entire 360 online library available on day one with new stuff, all games digitally sold, the price of the entire machine made extremely cheap with a Live contract... I think that would be VERY tempting for consumers.
That's if they do it right of course. Also that assumes Sony or someone else do not launch a very similar product at the same time with better games/prices/marketing.
I can see it happening and MS are in a good position to be the ones to do it. There have been plenty of precursors and plenty of failures, but I think that looking at the current market it does seem like now's the time.
After all, developers are wincing at the idea of drastically more powerful consoles ramping up games development costs. So perhaps it's not only the path of least resistance, but maybe also the most profitable in the long run. Given the way mobile phones have diversified and how the actual 'phone bit' is pretty much the least used you'd be a fool to discount the possibility of a console that has games pretty low on its list of priorities.
Generally I see a future that is somewhat bereft of technology that does only one thing.