[wooohooo]

http://www.computerandvideogames.com...tedly-planned/

the platform holder is expected to take the two model approach much further with its new console. It will reportedly offer a "pared down system to be released as cheaply as possible, and positioned more along the lines of a set-top box (the use of 360 as a Netflix viewing platform in the US is colossal) and perhaps as a Kinect-themed gaming portal".

"a more fully-featured machine with optical drive, hard disk and backward compatibility aimed at the hardcore would be released at a higher price-point", the site adds.
It also claims Kinect is likely to receive a significant upgrade, and will more than likely be bundled with the console.

Microsoft is rumoured to be planning to make the first official announcements about its next-gen Xbox at the CES expo in January 2012, while Edge has heard from sources that the system may launch as early as next year.