"Once Xbox 2 comes out, you should see some healthy sales for Xbox 1 as the mainstream market moves in to pick those up while the hardcore market moves on to new technology. The Xbox brand has been marketed very well, so it has enough mainstream recognition to warrant sales for years to come, long after it's no longer a hot item for hardcore gamers. Xbox will do even better if it copies PSone's model for success: smaller, sexier, cheaper. If it's to appeal to that slow-to-adopt mainstream audience, it'll have to be a lot smaller in physical size."
McNealy, likewise, thinks that the first Xbox should still appeal to newcomers and other gamers looking for a bargain. "As per the traditional buying patterns, the Xbox will likely be priced at $129 or $99 and will still have some appeal to more price-conscious consumers."
This original Xbox's size issue doesn't seem like it will be resolved anytime soon, however. Microsoft will not be exhausting any resources on a slimmer Xbox, or if they plan to, it's a pretty well kept secret. "I don't think there's a chance of that happening," Rob Smith, Editor in Chief, Official Xbox Magazine told GameDAILY Biz.