I think if this is something about it is about a new xbox coming next year with Natal. the 1 gb rumour match the new xbox upgrade to 1gb rumour. In this situation from a market point of view it would be a winner point for Microsoft taking into account that the new system would be "upward" compatible with the Xbox 360 games, increasing AA, and filters. Natal will need processing power and memory and this gets on also with the rumours hinting the cpu would pass from 3 to 6 cores.
This is a win win situation for Microsoft. Nintendo will have to launch its Wii HD in 2010 or 2011 as the DVB television signal will be mandatory in many european countries for 2010 -no more analogic signals-. Here for example shops and local governments are giving discounts for your old SD tv machines. People will start looking at HD sources more than now ( i supposse this christmas will be a good time for blu ray sales ) and Nintendo must be there, more now that has lost its "momentun" with the "waggle" wars. And in this situation Microsoft can kill three birds from a shot:
- Sink Sony more as Sony is the only one of the three that i can´t see launching a new system until at least 2012. People with a PS3 that is a graphics whore will jump to MS.
- Bring some "waggle" casual market from Nintendo to Natal.
- Bring again many hardcore graphics whores from the PC space as the new system would allow to cope with Arma 2 or Crysis PC counterpart level of graphics.
I think its estrategy would be to make games with two level of graphics details: one for 360 and one for Natal. Everybody would be happy.
There have been many hints about this lately: Ballmer´s messing it up in his speech, ATI saying "wait to see next console graphics"', next ATI RV840 chip being very little and suitable for consoles, this news about X-engine, and so on. But above all i think Microsoft now believes in itself and his "momentun". They will go for their plan, the one they have since the first Xbox: dominate our living rooms.
Think about one thing for a moment: wouldn´t it be ironic that in this supposse 10 years cycle in which 360 and PS3 should last until 2015 a Wii HD launched in 2011 would be the graphics king for 4 years ?.
I think Microsoft won´t let it be nor graphically better nor "waggle"-ly better one month!!.
Or i could be completely wrong!!.