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By home company, do you mean you work for Nintendo?

To answer your question:  no.  There is already a device that does all of what you mentioned, and that is a PC.  A PC plays all formats, can play hd movies, can output to resolutions far greater than 1920x1080 (1080p), has graphical capabilities that surpass consoles within a few months of their release (meaning already), and can be upgraded at the users choosing, not just when another SKU is released.

You are still forcasting a doom for the PS3 that has not come to pass yet.  Btw, the sales forum had a post that showd that the 360 is barely more expensive than a lot of successful consoles: 

5 SATURN  $   399.99 1994  $     538.33 C
6 ATARI 5200  $   249.99 1982  $     534.69 C
7 COLECOVISION  $   199.99 1982  $     427.75 C
8 X360  $   399.99 2005  $     413.59 C
9 GENESIS  $   249.99 1989  $     410.84 C
10 PS   $   299.99 1995  $     393.52 C
11 NES  $   199.99 1984  $     390.29 C
12 SEGA MASTER SYS  $   199.99 1986  $     361.19 C
13 PS2  $   299.99 2000  $     351.25 C


Those are inflation adjusted.  So, saying that the 360 costs too much is not a graet argument.  As for the PS3, it was #4 on that chart, and yet still has sold quite well considering much of the console's worth is forthcoming.  Let it go and let this thing playout!  

Btw, as for Sony's craftmanship...this was also it's own thread recently and we have all documented cases where most consoles had problems.  However, the PS3 is very well built and aside from a small batch has had NO PROBLEMS.  The 360 is the one that has had to be replaced a lot, not the PS3.  PS1 and PS2 had problems but still worked for quite some time.  The PS3 (including mine) has had no such problem.  

Please take your Nintendo agenda away or at least get off of Sony's case.  Please?