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MS has a great foundation to build on. They are still in a good position and I think that its possible but Nintendo has over 30 years of experience and a catalog of games and franchises like no other. If Nintendo is complacent and they refuse to give consumers what they want such as a decent online experience and HD graphics, they may fall behind.

MS needs to build on Xbox Live and XBLA. They really need to sell the idea of their console as a multimedia device and Netflix is a great addition. I like the position they are in but you can't count out Sony as the Playstation brand is still strong. It will be an interesting generation.