Originally Posted by Doppel
I know you love that Kinect 2
I'm not sure there's a compelling business case for MS increasing 360 sales by integrating with other devices at the same time as releasing the 720; the former could hurt uptake of the latter.
It's pretty solid Microsoft has a two tier strategy and will be releasing a low cost Xbox set top box long with the higher priced Xbox 720. The question is what processor goes in that box.
My reasoning is a 28nm Xbox 360 chip in that set top box makes the most financial and growth sense.
1. Microsoft already owns the architecture and at 28nm it would be very cheap to produce, use little power and need minimal cooling.
2. The existing 360 'hard core' gamer base would definitely buy the 720 at the higher price point, but would recommend the Xbox TV to family and friends.
3. The idea of a cheap set top box is to grow a new demographic and pull in casual and Nintendo gamers. current users of streaming boxes and the curious to substantially expand the Xbox Live base.
4. The idea of giving them the ability to play 360 games is to give them a taste of harder core gaming which would lead those that like it to upgrade to the 720.
5. It could easily be sold at $99 with a 2 year subscription. That would be an offer for an Xbox branded console tens of millions couldn't resist.