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Well I think this gen has been a great gen. Possibly the best since the SNES days.

There are so many quality titles on the HD twins that marks it as such.

As for direction. Things seem to be at a tipping point.

The new ground being broken by Natal the Wii and the Sony Wand Gem or whatever they wind up calling it seem destined to drive a knife into one or more companies and further fracture the market.

Its risky. Nintendo have little to fear they have made oodles of cash from the word go and can survive pretty much anything.

As to MS and SONY neither can afford their motion detection option to fail.

SONY seem to be taking a slightly bigger risk IMHO. The PS3 has now at last taken off but it is still losing them money every unit sold (trust me if it werent SONY would be screaming the fact from the rooftops)

If Natal fails MS will lick their wounds and launch into the next gen early again. Like it or not their software division is a monster which can act as a huge safety net.

Sony on the otherhand have Blu Ray which is slowly but surely gaining market share and will be a longterm cash cow but if the wand fails it could have a negative effect on the PS3.

I hope they all win but I worry the market only has room for Natal or GEM to be a success story.