Speaking to Industry Gamers, DFC Intelligence analyst David Cole has said that a revised, streamlined is a case of 'when' not 'if'.

"However, the when part is a big uncertainty...", the executive explained, "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 which could also tie in with redesigns.

"There are a lot of questions 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."

Speaking on an panel, other analysts weren't so convinced of Cole's prediction, but they did see merit in new SKU for the 360 - launching alongside the Natal system in 2010.

By Luke Guttridge