I think the DVD is the Cancer that is slowly killing the 360. Just imagine what the 360 could do if it had 67 GB discs for games. Not only that, it's also region locked (I never understood the point in that)... But, you have to look at things like shooters (are we sick of those things yet?). But, the PS3 is just the better console choice and is slowly becoming the next super nintendo.
Eventually, game developers are going to start putting games on 3-4 discs, because 16GB just wont cut it anymore. 360 is loosing ground because the PS3 is simply a better system for a decent price now (and more people are slowly understanding why it was 600 to begin with). The PS3 even does stuff we don't even care for.... Who really needs 7 players on a single game system? Maybe PS4 will do 10, and if we're lucky, 10 player local FPS support.
What I'm SURE will happen is something similar to adhoc party in the future. People will be able to connect and play as 1p, and 2p locally, even when player 2 is away on another system, and, it will work for PS1, PS2, PS3, and PS4 games...
I think Nintendo and Microsoft started the generation off well, but, the way they did it will spell doom for next gen. for both of them.
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