Wakey Wakey Microsoft - time to step up the basic/nonbundeled Elite SKU configuration - you're getting overtaken by the other guy :-)

"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence."

John Adams, US diplomat & politician (1735 - 1826)

Sorry to disagree with you folks - this is by far the most preposterous rumor I've heard in a long time.

Developers and publishers will never use the alleged “new muscle” (1UP’s term) – that would reduce their target audience by 30 million. Even for Natal-games the publishers will never utilize such added power using the same reasoning.

If you’re then thinking – “well dude, this is software – EA et. all will just make games that gracefully downscale” – well no they want, it’s a simple CBA argument.

Looking at the handheld audience for perhaps a clue to what such features might be; the PSP Go and DSi has shown, that interim platforms probably will only get new non-essential features e.g. web-shops, cameras, reduced form factor and even removed optimal drives.

My guess would be: a X360-slim, internal HDD (aka PS3) and wireless LAN bundled with the Natal-camera – perhaps an all digital version without the DVD-drive to further combat piracy and take advantage of the “games on demand”-service that’ll launch this autumn.

Seriously, can anyone even contemplate how the PS2 would have suffered, if Sony had released a PS2 1.5 with more gpu/cpu-omph in response to the more powerful Xbox?

Ahh Hirai - be quiet now please...your hurting my brain with your contrieved PR-bull.

But then again, the man is right: "you end up with a fickle audience that might be big but will probably move on" Point in case being the truckloads of casual PS2-owning families, that now are have a blast with Wii Sports.

Sonys repeaded message over the last 6-8 moths: "We're not fucked oh no; our competitors er fucked! Even though they enjoy great sucess currently, just watch as we'll magically (and much deserved we think ourselves) establish our marked superiority in the days and years ahead"

Bobby Kotick - stop blowing smoke out your behind!

Whining about how other companies want take the brunt of pricecuts to further your own business isn't manly at all.

Add to that, that you yourself, during Activisions last financial report, stated how peripheral-games were essential to Activision to further draw money out of peoples pockets.

What? You didn't count on us being able to remember more than a week back in time? Well, sorry to burst your PR-bubble.