Microsoft doesn't need to respond to home. It will destroy itself, secondly its optional (Which means not everyone will have it). Sony doesn't understand how you win an online gaming war. You don't do it by creating second life. You do it, by making the online experience quick/efficient and sensible. I'd hope for Homes sake that Xbox live on the 720 doesn't blow them away. Microsoft knows how to make online gaming great because they are in the business of doing that even outside of the gaming industry.
Home gives people with no life a chance to live their sims dreams. To invite their gaming friends to their fake house, sit on their fake couch (That they cannot afford irl), talk to girls (Who are probably fat irl) and Buy clothes and other useless pieces of junk that leave sad asses who cannot advance in the real world salivate.
