Xbox 360 Slim a possibility for E3

A few months ago it was one of the hottest rumours in the games industry, but the Xbox 360 Slim seems to have dropped off of the radar – until now.

Lazard Capital Markets analyst Colin Sebastian reckons that an appearance for the new machine at E3 next week is not completely out of the question.

We note that a slimmed down form factor for the Xbox 360 is still a possibility [for E3], along with increases in storage capacity and enhanced motion-sensing user- interface, as Microsoft expands the digital media capabilities of the platform.

We also expect Microsoft to announce further enhancements to Xbox Live, as the service emerges as one of the leading platforms for distributing and consuming a broad range of online games and other online media.

"Microsoft is likely to announce new and expanded content partnerships (e.g., Hulu) as the battle for the living room audience and home network intensifies.”