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The Xbox is selling good, but there are a bunch of rumors that they are working on the next model right now with a public debut at one of the trade shows this coming year.
Supposedly, the new models will be smaller, more powerful, and actually cheaper than the current model. Several game developers are said to be working on launch titles.
The thinking is that the gaming market has changed and that a company waiting until its console has totally run out of momentum is actually giving the competition a chance to jump in and steal marketshare. That's what happened to Sony.
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