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Well I do agree on you with the Multiple SKU issue. Espeically since they continue to introduce more after launch, further complicating things. The best way for either company to gather momentum for their next console would be to make it fundamentallly different from the previous so as to both not confuse the public, and to market it as an experience that can't be had with thier previous console. One friend I talked to was confused that's there's actually two XBOX's. (360/Orginal)

I think the Wii shows a great difference from the previous generation because Nintendo decided to market on the controls and not the graphics. Both the 360/PS3 use Graphics has a heavy marketing point, and fail to make the impact the Wii has, or even previous consoles did in the last generation with thier graphical improvements.

Not sure what you meant by Nintendo sitting on CD's. They didn't sit on the previous succes of the SNES or the NES
 (though they could have) and went ahead to make a new console. CD thing was because of thier CD attachment deal
 that went sour with Sony and the debacle the CD-i turned into. Like I said before, Nintendo had a winning stragey with the Gameboy line, and decided to deviate from it. And they seem to have a Winning stragey with motion controls but have made Wii Fit and the Balance board.

I don't understand why not knowing where the next race will go is upsetting. Isn't kind of exciting we don't know
 what's happening and we might see stuff we never thought of before?