I believe that Home is the future of communication. It will always be smaller than MSN or Myspace, but it will certainly be next gen to the casual market. The problem is that the PS3 (I believe will never be that big to embrace that casual market.) Than again it has it chances on the hardcore market to be a WoW entrance point to a wide variety of games to discuss strategy. Eventually Home will be a standard in gaming.
So how will Microsoft respond? Well although Home hasn't been released they already have responded. In the future it won't be enough. Because avatars are not the future. The room in which the avatars live are the future. And that's what the PS3 is delivering. In my point of view Microsoft still needs to improve.
Be fair a avatar that looks the way you want it to be is nice. However as a gamer you are buying games and you have to be curious about the Home area of a particular game to be involved. It will be the ultimate meeting point of a game without a question. Gamers are almost always looking for success. Just like athletic sportsmen.
In the end how will Microsoft respond to Home. Well just avatars? That's 100% not enough. So is it the arcade version that stops the improving? I think it is. Next generation Microsoft will have it's own Home. However they will be saying that it's just unnecessary up until now.
One thing is for sure MSn and Myspace won't stay forever and it will be taken to the next step. It will almost certainly look like Home.







