I'd be as bold to say it would be in MS's best interest to repackage the 360 as a different console with Natal included and release that as competition for the next Wii while still releasing a new console.
I think we can all assume that the next Wii is very likely only going to be as powerful as the current 360, by the time the next Xbox is ready for deployment the cost of producing the 360 in a new form factor should warrant a price very VERY competitive to whatever Nintendo plans on putting out for the next Wii. They could still release Natal as an "Add-On" for current 360 owners who would now have the same system as the Wii HD or XboxNatal but also be a potential customer for the next Xbox as well.
If MS's competition in 4 years is the PS4 and Wii HD; then why not take advantage of one of the competitors low power requirements and undercut them with a proven library, better price and potentially better controls and graphics?
Nintendo succeeded with the Wii because nobody saw it coming; however both Sony and MS are potentially sitting on technology that is going to be as strong if not superior to the next version of the Wii and I think one of them should take advantage of it. MS with slightly older hardware (reduced cost) has the best chance of repackaging the 360 as a new motion based system.
MS would be fighting for 2 demographics but could do well enough in both to warrant the risk because I believe the payoff would be huge. For the new XboxNatal they need to find developers and create new IP that targets that demo-graph while many of the existing developers can now create games for the the Xbox720 and XboxNatal.
Just a thought
I think we can all assume that the next Wii is very likely only going to be as powerful as the current 360, by the time the next Xbox is ready for deployment the cost of producing the 360 in a new form factor should warrant a price very VERY competitive to whatever Nintendo plans on putting out for the next Wii. They could still release Natal as an "Add-On" for current 360 owners who would now have the same system as the Wii HD or XboxNatal but also be a potential customer for the next Xbox as well.
If MS's competition in 4 years is the PS4 and Wii HD; then why not take advantage of one of the competitors low power requirements and undercut them with a proven library, better price and potentially better controls and graphics?
Nintendo succeeded with the Wii because nobody saw it coming; however both Sony and MS are potentially sitting on technology that is going to be as strong if not superior to the next version of the Wii and I think one of them should take advantage of it. MS with slightly older hardware (reduced cost) has the best chance of repackaging the 360 as a new motion based system.
MS would be fighting for 2 demographics but could do well enough in both to warrant the risk because I believe the payoff would be huge. For the new XboxNatal they need to find developers and create new IP that targets that demo-graph while many of the existing developers can now create games for the the Xbox720 and XboxNatal.
Just a thought