While he was talking about cloud computing yesterday, Microsoft CEO Steve Ballmer made a casual remark about the future of the Xbox. Apparently there might be new form factors, options, and price points coming:
In the case of the TV we've got both strategies. We actually have a TV implementation in some senses built into Windows," Ballmer said. "It works really well for small screen TVs that you might call a PC, but for that big screen device here's a piece of hardware that we build, there's no diversity. You get exactly the Xboxes that we build for you. We may have more form factors in the future that are designed for various price points and options, but we think it's going to [be] important.