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I think Microsoft will drop out 1st. Main reason is because they are a software compnay. Another reason is because of the RROD. If the next xbox starts off with a high failure rate like the 360 then a lot of xbox fans will be unhappy and some may not buy it but if it don't have any problems then I see Microsoft making more consoles. For Nintendo they not going any where. Nintendo don't even need to make a HD console to win and they prove that with the Wii. As long as Nintendo keep they consoles cheaper and keep making games like Mario and Zelda, people will still buy