Senior director of Xbox product management, David Hufford, tells The Guardian:
I think it's important to say that the Xbox 360 is the console of the long future for us. There is no need to launch a new console, because we're able to give this console new life either with software upgrades or hardware upgrades like Project Natal... The Xbox 360 was designed for a long life, and I don't even know if we're at the midpoint yet.
With rock-bottom prices, 3D visuals on all platforms coming this year, and motion control being developed across the industry, it looks as though breaking crossing-over into photo-real graphics has taken a back-seat.





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