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"Just coming up with something that's faster and prettier isn't going to be sufficient," said Bach. "The life cycle for this generation of consoles -- and I'm not just talking about Xbox, I'd include Wii and PS3 as well -- is probably going to be a little longer than previous generations."
http://www.pcworld.com/article/156895/no_new_xbox_because_faster_and_prettier_doesnt_cut_it.html
I'm no console gamer but it makes sense to me.