Microsoft is getting the hang of the home console business, and while their Xbox did not burst out of the blocks by being a phenomenal success as Sony’s PSOne, it paved the way for the current success that the Xbox 360 is enjoying. This has further whet the appetite of the computer software giant by working on the development process for the successor to the Xbox 360 console. At least, that’s what Blizzard’s Rob Pardo has confirmed, trumpeting that Blizzard is currently chatting with Microsoft concerning their upcoming console. We wonder how will Sony react to this as they have positioned their vaunted PS3 to be part of a 10-year cycle, so with a new Xbox on the horizon, this could seriously throw a spanner into Sony’s works if it manages to outstrip the PS3 in all aspects while maintaining an equal or slightly more expensive price point. We don’t think a new Xbox will dampen demand for Wii sales though, as that is on another galaxy altogether.