"The 'next generation' will be defined by software and services, not hardware," Shane Kim, corporate vice president of Microsoft Game Studios, explained. "In the past we would always get this question, 'Hey, there's a new console launch every five years and you're coming up on that time for Xbox, right?' That's the old treadmill way of thinking."
"Before you had things that were very obvious, from a hardware standpoint--pushing more pixels, the move from 2D to 3D, 3D to HD, etc. We got a very powerful piece of hardware in Xbox 360. I am confident that we have more headroom available, in terms of developers and creators figuring out how to get more out of the system."