Super boxes like hinted at here would die on the market as they'd have to be $400-$500. This just confirms the suspicion that next gen will see subscription fees/subsidized boxes.
Agreed, the more I hear about how powerful the 720/PS4 will be, it sounds like a given that the traditional pricing model wont be used for them. Sony can't afford to sell a $600-1000 console for $300-400 anymore. How much were they losing with the PS3 being initially sold at $599?
Also, with Kinect 2.0 with improved sensor chip + powerful GPU/CPU, Microsoft wont be pricing the console at $300 without some sort of Xbox Live subsidy.