"company decided against a long-tail strategy with original Xbox – but this generation is a different story"

Yeah so why the 2 xbox 1.0's I have are in perfect order and the one 360 I own has been sent 3 times already to be fixed or replaced! I bet my Xbox 1.00's still work in 2012 but not even sure if my 360 will hold out the rest of this year!

I seriously can't see this happening as reliability issues, although better, are still cropping up and the problem for Microsoft is going to be how to get people to stick with their next console they develop, when reliability is going to be the major issue people will consider when they decide what console to get next.

I really don't see this happening, while the PS3 has a hard drive, and games such as MGS4 maxing out a blu ray disc, the 360 will not be able to compete and have big games created for their console. If MGS4 has maxed a 50GB blu ray disc, the 360 would need over 5 discs! I think he's just saying this to keep 360 sales up when people may be thinking 'the replacement is just around the corner, why buy one now?'

So none of you can see this happening?

We'll see then.

JIMMY RECKON.
new xbox is out in 2010.

This does not say however that a new xbox wont be out before then. simply that they wont be ending production of the 360 until 2012. After all the PS2 still lives on along side of the current PS3.

I doubt, apart from ideas like selling games over live connection replacing discs, that any company has a viable idea for where to go for the next generation. The best thing that Microsoft could do is come up with a way that consumers could write to external hard drives for larger games - multiple disc titles are not all that desirable, and it would not help a company like Rockstar make a bigger GTA.
As for MGS4 filling 50 Gb, based on that series' track record, it will be damned cutscenes, which are known to take up more memory than most aspects of a game.