There's no doubt that the 360 is near the end of it's cycle, a next gen console is sure to be announced sometime within the next year. It's already rumored to be under way, but it's never too late to get in on the action. It's going to be at least another year-and-a-half or two before the next gen consoles start hitting shelves. You've also got to consider that devs will be working on current and future 360 projects well into the first half of the new consoles life simply to establish a sizeable library. I imagine it'll be a subtle transition and I expect the 360 will be kicking for a few more years.
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