Last I heard, the next Xbox (I refuse to call it the 720, such a horrible name...just call it the NextBox or something, media!) is slated for a release in the Holiday 2013 window, with companies like Treyarch, EA and LionHead (hey, now that Peter Molyneux's gone, maybe the next Fable WILL be as good as promised!) working on launch titles. Pure speculation, obviously, but that's what I've heard about it.

Given that it's Microsoft we're talking about here, I don't see them keeping the 360 alive for very long once the next Xbox launches. There would be no incentive for the casual gamer to purchase the next Xbox if they kept the 360 around, so as a company, the logical move is to push the customer towards the newest product. I could see the 360 lingering for a year at the most, but not beyond that, unless the next Xbox is such a colossal failure.

As far as completely losing the physical me drive, I have to agree that it's unlikely for this generation; however, I wouldn't put it past Microsoft or Sony to make that move. They're doing all they can to push consumers towards digital goods as much as possible, and the next logical step is for games to lose the physical counterpart. If there is a physical media drive on the next Xbox, my guess is that within 2-4 years Microsoft has most of the major developers releasing games via Xbox Live Games on Demand the same day as their physical copies, so that fewer customers buy physical copies and they'll tail off to the point that it becomes a "logical step" for the companies to take. Cheaper for Microsoft and Sony, cheaper for the developers, etc. It'll anger gamers everywhere, sure, but the casual gamer won't care, and that's why it'll probably happen at some point. I dislike it, because I like to know that I actually own the game I paid for, but I suppose I'm equally hypocritical because I enjoy downloading games from XBLA (indie games, particularly). This is turning into a ramble, so I think I should end this here, but essentially -- I don't see the physical drive slipping away at the start, but wouldn't be at all surprised if it did in the later life of the next console(s).

Having said all of that, I did recently read an article that mentioned plans for an Xbox set top version, which is essentially what we're talking about there -- a stripped down Xbox good primarily for TV and apps, but with limited XBLA capability. Won't be the standard model, but a cheaper alternative for those who aren't big into gaming.

I wouldn't bank on casual gamers being upset with the loss of physical games. Most casual gamers are used to it by now (XBLA, PSN, mobile games, etc), so it would be as natural a progression for consoles as it was for those.

It's definitely going to be a Holiday 2013 launch for the next Xbox, that's practically a given already. Best time for them to launch, and I wouldn't be surprised if it were near enough complete already.

Question is will there be another gen of gaming consoles that actually sell in the market? We're getting more and more computer spec'ed with each new gen of console to the point where most hardcore gamers are just using a PC and download services like Steam and Origin. PC gaming is expanding more and more and it seems to me like console gaming is decreasing. Will a casual gamer really care about graphics that they can't really see a difference to with their eyes?

As others have said, the PS2 was a huge hit and it was a hit for a reason. People saw its power side by side with the PS1, it was much much better quality and the PS2 was able to play DVDs. Those were huge perks to the casual market. When the PS3 launched, many casual gamers turned their noses up at its hefty price tag that came with the system. We had the format war of the HD DVD and the Blu Ray going head to head and no one really wanted to cough up money for a power house console at the time.

Now the tables are completely turned. Blu Ray won, the 360 and PS3 are pushed to their limits graphically by their amazing developers and many casual gamers own either system if not both. Pricing is perfect game and console wise finally. I don't feel that people are going to want to spend a lot of money on new generation gaming systems when they won't really see that much of a change in power to the naked eye.

As avid gamers we know the specs and will be able to notice the differences but I feel with things like the OUYA on the horizon and Steam dabbling in hardware both Microsoft and Sony are going to be hesitant on releasing the PS4 and 720. Tablet / Smartphone gaming is becoming bigger and bigger and developers are jumping on board with this platform as well. We didn't have a market like we do for power house gaming consoles like we did when the PS3 and the 360 came out. In my eyes they're going to want to gain as much money from an already established console that has a huge fan base for as many more years as they can. Verses trying to slowly ween a mass of people into a brand new market of higher priced consoles and games that in this era may not work out as well as planed.

I agree with you man. I think you misunderstood me though. The PC has always been there for sure. What I'm saying is PC gaming has had its fan base increased by two, maybe three times the size it was in 2005 when the 360 launched. Back in the day the majority of game players that wanted to game, went out and bought a console of their choice. Today, you don't need a console to get many of the same titles being released and the PC has the graphic edge that many hardcore players crave. Consoles are by no means dead, but the market for them has greatly depreciated - I think that is why it is almost 2013 and we STILL have the Xbox 360 and the PS3.

I think the PS2 is dead, and as for the next gen I agree with your guys' points. I unfortunately believe the used game market will be dead for the next Microsoft and Sony systems.