releasing the "720" next year.
I think that couldn't be farther from the truth. There are two things going on here, at the same time.
Firstly, Microsoft can see the overall decline in 360 sales as a general trend, and understands this trend will continue. They have already commited vast resources to their next gen console.
Secondly, and perhaps just as important, they see how poorly Sony and the PS3 is doing, comparatively, in the USA. Microsoft isn't stupid. They know that Sony will be putting in maximum effort to get their new console launched asap. The very success of the 360 is paradoxically what will drive Microsoft to push forward, on their next gen console...if only to prevent Sony from getting a drop on them.
Microsoft WILL NOT let Sony release their PS4 in a vacuum, without having their next Xbox ready to compete. Plain and simple. Does this mean the end of 2013, or early 2014? Microsoft's decision probably has a lot to do with anticipating when Sony's PS4 introduction will happen.