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BluZilla is going to rampage for the rest of the year, no question. The PS3 was held back its first year by the lack of HDTVs, but right now, prices of 32" HDTVs are closing in on the $1000 mark, which means mass affordability. Once the PS3 is price-reduced to $299/299EUR in November, it's game over for Microsoft.

I don't think the recession will change this. In fact, I suspect many folks will cut down on their driving and travel (especially vacations), and spend more money on home entertainment.