i would say "Rumors Gonna Rumor". A Fully Digital platform COULD happen if Microsoft wants to gap in their PC Players with their XBOX Players AND try, to somehow... for some reason... go head on against Steam.
But they already saw that it didn't work out very well with Sony, twice... you could argue that Sony was focused on the PSP for that, but in the end it's al consoles... So, a fully digital platform is quite unlikely.
And as far as i'm aware, Microsoft is not in the "edge" of cloud computing or storage, so we're talking hard-downloads and data here. Which means, you would either need a big HD for all your stuff or re-download your content every so often. One would hack up prices (unless microsoft lets you use any HDD...), the other is simply a product killer.
My guess is that microsoft would/will try to make the next Xbox into the "Cheapest Pc-Gaming on the market"
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