Instead of reinventing the outside of the console, Greenberg says that Microsoft is intent on continuing to reinvent the way people use their system.

That includes things like adding the ability to stream movies through NetFlix, the upcoming addition of Facebook, Last.FM and Twitter connectivity. Greenberg also points out that Microsoft's motion-detecting Project Natal, an interface he calls very next generation, is coming to this generations console.

"We feel that we're not even at the halfway point (of the Xbox 360's life cycle)," he said. "That is something we believe in strongly. People have invested in these consoles, and we have massively connected communities and we have storage. I think what we did with the New Xbox Experience is a sign of what we want to do with the console."