The XBox 360 is now almost three years into its life cycle, which, traditionally, would make this about the time that Microsoft would be considering production on a newer model. However, analysts say that this would be a bad time for that, and that the 360 still has a lot of gas left in the tank, and that the improvements that a new-new-generation system would hold aren't significant enough to make it worth the effort.
First off, the idea was, at some point, to incorporate HD-DVD into a new console, which, as it turns out, might not be the best idea, considering the slide that HD-DVD has been on over the past couple of months. Also, the analysts say that shifting the market just for the sake of doing so might be disastrous. In other words, it's going to be a long time before you see the XBox 720.