Xbox 360 Slim? Analysts Weigh In

The PS3 Slim is about to hit retail and consumer interest is already pretty high, judging by Amazon. Although Microsoft has already made some internal changes to the Xbox 360 hardware (in an effort to prevent the dreaded "red ring of death" from happening too often), IndustryGamers thinks Microsoft would do well to introduce a slimmed down Xbox 360 with a sleeker design, quieter performance and most important of all, greater reliability. 

What are the odds of this actually happening? Analysts appear to be split, with some believing it's a certainty and others saying it's not likely at all. Below are the responses we got from several leading video game industry analysts.

David Cole, DFC Intelligence

"I think it is a question of when not if.  However, the when part is a big uncertainty...rumors have been going on for a long time.  I think people were asking me the same question last year at this time.  As cost efficiencies allow smaller and more reliable is always a good thing. However, you also have something like Project Natal which could also tie in with hardware redesigns.  There are a lot of questions Microsoft must weigh internally and there are always going to arguments on both sides of the fence around timing. So I don't know, but in our DFC forecasts we anticipated a major redesign in 2010....so I guess that was our bet."

Todd Greenwald, Signal Hill 

"I could see a model refresh with the Elite version replacing the Pro version, and maybe a price cut down to $249 to stay below the PS3 price, but don't really see a Slim version.  I think Natal is the next big thing from Microsoft, and until then it will be mostly price cuts and small tweaks to the different models (bigger hard drive, various games bundled in, etc).  I expect a Natal bundle to be launched with a huge marketing blitz in 2H 2010."

Ben Schachter, Broadpoint AmTech

"Yes, I think they will release a new look for the hardware in conjunction with the motion sensor next year."

Arvind Bhatia, Sterne Agee

"It would be nice but I don’t think they have to. I think Natal will be killer app that will help keep the momentum for the 360 next year. I do think they need to cut the price by at least $50."

Next page: Michael Pachter, Jesse Divnich and Colin Sebastian share their thoughts...