The Xbox 360 is not going anywhere in the upcoming release of Nintendo's Wii U, or Sony's proposed next gen system. They're bunkering down with upcoming partnerships including Nike and relying on the Smart Glass app launching this fall. At least for the next two years.
Microsoft Studios head Phil Spencer told GameSpot:
"It's a platform that has really reached scale; this is the time when you really see the great content showing up. The future in a lot of ways is always tomorrow: [things like] the SmartGlass technology and Windows 8 [show that] things are going to constantly evolve. The world where everything gets centered around one console and when that comes out--we kind of have to evolve away from just thinking about that, [especially] with the service-based nature of games today. Right now the Xbox 360 is really healthy and it's doing incredibly well. I think the 360 has a lot more than two years [left]. It has legs for a long time."
Essentially what Microsoft is drawing a line in the sand: we don't need to release jack until it's ready. An ideal next generation Xbox would bundle everything that's currently piece meal (Kinect, Wireless and possibly a redefined Live) into one standard package that mirrors their current standard of pricing escalation. Perfecting the Smart Glass app is key to where they head to in the future, as it could become a total flop and need to be redesigned or they push forward with it like the great motion sensor craze of 2009.
It's silly to debate about next generation consoles when even the Wii U is technically the first to emerge while the Playstation 3 and 360 are nearing the end of their significance. But even when their respective replacements are announced, they won't just stop existing. The Playstation 2, as GameSpot points out, had a lengthy run after the Playstation 3 came out.
For now, we're more than happy with our 360. Two years is nothing.