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The 360 is certainly the best games machine of the gen in my opinion but maybe now as it goes into its fifth year some of the early enforced design decisions are starting to show.

The lack of a HD physical medium is holding the console back.
Digital Distribution is an option but the choice of a non HDD version and poor broadband penetration in the United States means it cannot be utilised.

On the upside the chipset and mem config decisions have allowed the Xbox to still slug it out toe to toe with the PS3 and often win after several years.