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URNotE said:
since you wanna talk about companies choosing sides.. what do you think companies are gonna do about japan.. when it comes to ps3 vs. 360..

 If the current trend continues this answer is pretty easy. Bigger companies consider the USA and Japan, while smaller companies will more or less favor handhelds and the Wii.  Europe on the other hand is a less attractive market compared to the US because it is much more locally restrictive. Different laws, different languages and so on. There is not really a european market for expensive HD consoles. While there are games that can be especially designed for certain markets, the distance between France and Germany can be bigger than the distance of the US to these markets. A game can be a hit in France and the USA, while it bombs in Germany and so on. For distributors this is no common market but more a map of several scattered markets with totally different rules. You can design games for certain markets on the PC or the Wii but I think the Xbox 360 and PS 3 are less interesting due to the bigger financial risks.