New Xbox hardware won't be the focus of a Microsoft press conference at E3, contrary to rumors posted earlier, but that doesn't mean that Microsoft isn't planning something. In fact, M2 Research analyst Billy Pidgeon has told IndustryGamers that it's entirely possible that we may see a hardware announcement from Microsoft at E3 2012.

Pidgeon argues that Xbox 360 is hitting a peak of sorts: "While Xbox 360 has peaked in some respects, particularly in North America, the system is still selling strongly and penetration potential remains -- in Europe overall, and in the young end of enthusiasts as well as the mass market for an extended back half of this cycle."

Nevertheless, Microsoft is always preparing for the future, and he noted that it's going to take some time for publishers and developers to get acquainted with the new hardware before Microsoft could make any announcement: "Vetting the system's basic capabilities with the top third party publishers and developers is a crucial phase of next generation design, necessary to encourage support and to solicit feedback."

While Microsoft's console has been strong, the company will be watching sales closely, and it could be that E3 2012 would be good timing to finally announce hardware. "It's in a vendor's best interests to maintain a system's viability as long as possible. On the other hand, should Xbox 360 hardware sales begin to drop off dramatically in Q4, or early in 2012 Microsoft will likely announce launch of a new system at E3 next year," Pidgeon said.

Posted: May 08, 2011 5:08 pm

Source: http://www.industrygamers.com/news/xbox-360-has-peaked-in-some-respects-says-analyst/