“Just coming up with something that’s faster and prettier isn’t going to be sufficient,” Bach said. “The life cycle for this generation of consoles, and I’m not just talking about Xbox, I’d include Wii and PS3 as well, is probably going to be a little longer than previous generations.”

He adds that the economic downturn will also play a part in the lifespan of consoles, noting that consumers are now reluctant to make large investments, but that software continues to sell well.

The Xbox 360 has also been doing well, seeing increased sales during the holiday season, and Microsoft reporting a lifetime sales of 28 million.