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To add to shio's post, which I completely agree with.

@ZenfoldorVGI

#10.  Did you just say that LAN is not local multiplayer.  I laughed at that.  Do you know what LAN means? Local area network.  When you hook multiple consoles together like in a Halo party, do you know what you just formed?  LAN based multiplayer (No joke, you just formed a LAN network).  LAN is local multiplayer.

#2 (I know I go out of order).  You mentioned problems inherent to the machine.  How about the disk drive/ hard drive being inherent problems on a console.  Devices with moving parts are highly subject to hardware failure, no matter how well you make them.  This is why old cartridge based systems have a longer life than disk based systems.  On a PC, if you disk drive fails, you can buy a standard inexpensive disk drive to replace it.  The installation process is simple.  Can you say the same about consoles?

Of course, digital distribution will probably make disk drives obsolete soon.  I could apply the same argument to the HDD.

#7 One poster proved you can make a PC more powerful than the XBOX360/PS3 for 350$ without pirating the OS.  It is difficult to compete with XBOX360/PS3's price because Microsoft/Sony tends to sell their consoles at a loss.