One source claims that Microsoft hasn't yet decided on the hardware makeup of a new Xbox. According to them, the company's board is "wrestling with whether to be profitable on day one" by using behind-the-times technology, or to launch the new console at a loss. Past Sony and Microsoft consoles have followed the latter approach, while the Wii was widely believed to be immediately profitable thanks to its more outdated technology.

Industry analyst Billy Pidgeon believes that "we'll see a game of chicken between Sony and Microsoft" while the typically-outspoken Michael Pachter believes that "[Sony and Microsoft] certainly don't want to launch at a $600 price point... it may take until 2014 to get 2TB hard drives, über-fast CPUs and state-of-the-art graphics and sell for $400."

As with many of the current Nintendo stories, however, this is all pure speculation. Once we find out what Nintendo are up to at E3, it's a fair bet Sony and Microsoft might start thinking more seriously about what to do next.

This article originally appeared on GamePro.com as