Honestly, the only way Microsoft can counter Sony's momentum would be to send themselves back into the red. Microsoft doesn't have the large games division that Sony and Nintendo have so they rely much more heavily on third party exclusives to sell their system. Unfortunately, the more the PS3 and Wii sell, the less attractive releasing a game exclusively on the 360 will appear for 3rd party publishers, especially since (like the article states) the 360 is floundering just about everywhere outside America.
What Microsoft needs to do to stay ahead of the PS3 (nevermind the Wii) is to tap into their vast pool of funds and cut prices of the 360 SKUs and secure 3rd party exclusives and timed exclusives. However, doing any of this would cause a significant amount of debt for Microsoft and I don't know if they would feel that it's worth tens of millions of dollars just to come out slightly ahead of the PS3.
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