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There is another option that they did not consider. My choice would be to forget about this generation and just focus on making a profit from here on out. There is no chance for either the PS3 or 360 to "win" by numbers. It simply will not happen any more barring some kind of disaster at Nintendo or a miracle by the invisible man. Instead of trying to win by numbers just chalk it up as a lesson learned and focus on decreasing the price of the PS3 so that it is more accessible to the masses and on making good games... something Sony is sorely lacking in and something MS needs to expand on. Both need to bring their consoles down to the $300 range. MS needs to somehow break the Japanese market and I dont think this will happen with the console alone. They need to leverage their OS monopoly. Sony needs to hire new qualified folks and remove the current incompitence working in high positions in their offices. They should have known from past experience that their $700 monster was going to fail but they simply have no one with enough brain power to see it. They need to make a profit this in gaming this next 4-5 years and then start work on a new console. Nintendo is hardly out of the water as well. They should be very worried about the next gen of consoles now that both MS and Sony have learned a valuable lesson.