Why this gen will last 7+ years

[Smashchu2]

I agree with your Nintendo portion and find the Microsoft one interesting but I disagree in regards to Sony.

Sony (and Microsoft) plan revolves heavily around third parties. This is the basis of the Sony brand, and why people beleive 3rd parties are extremely important when they weren't for the NES/SNES generation. Sony makes their console for a lose giving them a better machine (or one with more features). Then they will make that money back of of game sales and royalties, and the system will become profitable as the technology becomes cheaper. Basically, it's a plan to make money (and lots of it) in a year, however, it's recently that there is a wrench in the gears. This plan only works if the system is winning. If it's not it doesn't get the third party games then it can't make the money back. That is the problem Sony is having now.

The other thing is that consoles usually peak at 3 years or so, and the PS3 will be peaking in 09 (which may be one of the reasons it looks like it will be the 360). So it might not make it 7 years to make money. Not to mention both Sony and Microsoft rely heavily on third party support. The Wii is showing that it probably wont peak and since the other two will third parties will focus more resources on the Wii. If this is the case, they'll have to upgrade.

And welcome to the forums.