According to Pidgeon, ”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.
”It’s in a vendor’s best interests to maintain a system’s viability as long as possible,” he added. ”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.”
Another source is claiming that ”Microsoft is rushing to make an (Xbox 720) announcement at E3” thanks to Nintendo unveiling and demoing Project Cafe at E3 this year.
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