Interesting - though I'd like to see a bit more detail information and perhaps some diagrams.

My interpretation of this is that DSC is being phased out as an influence in the "differential locking" (xDrive uses the DSC to stop a spinning wheel - thereby providing a limited-slip differential effect) activities and a new electro-mechanical system will assume these duties... DSC will resume the primary role of stability control.

Have I got this correct, Eni and Scott?

The electro-mechanical diffs - are these both on the centre and rear differentials?

Sounds a lot like Honda's SH-AWD System that not only distributes power infinitely between the front and rear axles but also laterally to the left and right side of the car.

It's nice technology, but all this electrical intervention just because a car is understeering? Strewth, what ever happened to the good old throttle lift? I fear that with xDrive and Dynamic xDrive BMW are removing the driver from the vehicle control interface. At least that's the impression I'm getting...

I don't expect Mitsu EVO levels of aggressive cornering adjustability in BMWs equipped with such systems though I may be pleasantly proven wrong!

Oh and by the way, quattro does have one other inherent advantage over xDrive still: it's more compact by virtue of the fact that system is designed from the outset to be AWD and does not have to deal with the restrictions imposed by the rearward mounting of the engine. Such practice necessitates that the xDrive systems are heavier, more mechanically complex and less balanced.

Maybe that's why there's such a push on BMW's side to vociferously extol the virtues of xDrive? Is this another chapter in the onslaught of the mighty Munich marketing machine?

BMW make great cars, and the marketing behind them is just as great.