Wii - Factories producing it catch on fire causing further shortages. People who bought the system for Wii Sports get bored with it and flood the market with used machines in short order. MP3/SMG/SSBB have major bugs which demand a recall or are delayed indefinitely due to development problems. Wii remote technology found to cause cancer.
360 - RRoD is found to affect 90% of machines by year two. Halo 3 has a game-stopping bug and forces a recall after millions are sold, plus it sucks and word of mouth leads to dumping defective 360s in favor of a cheaper PS3. Blu-Ray kills off HD-DVD and, with a new $349 PS3, 360 sales die off in Europe and plummet further in N. America. Microsoft's shareholders finally have had enough of the billions in losses with no end in sight and pull the plug.
PS3 - No good games this fall, stuff like Lair and Heavenly Sword totally bomb. Third party games like Madden and FIFA sell by far worst on PS3, causing EA and other developers to curtail development for the system into the future. Sony decides that $599 is the standard price from here on out while eliminating backwards compatibility completely. A new PS3 firmware update bricks millions of systems and Sony won't pay for repairs.
In Memoriam RVW Jr.
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