Xbox Needs A Junior Companion

Microsoft's current world of consumer woes has one very bright spark - the Xbox 360, which continues to be popular with consumers and outperform the competition. It's a profitable line for Microsoft and the extensions of its capability with Kinect and major updates to software have kept the line fresh.

Microsoft needs to work the 360 further though, even if the rumoured replacement is possible only 12 months away.

The updates to the Xbox dashboard have brought content - games, music and movies; a web browser, YouTube, on demand TV, video calling and instant messaging - to the living room in a big way.

None of these things need an optical driven especially if games are to be delivered on demand. Limited amounts of flash storage would also suffice as opposed to the hard disk currently used by high end 360s.

I believe that Microsoft needs to tune the bottom end of the Xbox line to better compete with set top devices like the Apple TV and Google TV.

By making a small, spindle free version of the Xbox that retails at less than £100, supports Kinect and all the same cloud content as the full size machine then Microsoft could find that it's real competitor to the iPad isn't a tablet at all...