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Well the definitely have put themselves in a better situation, but it isn't like MS has simply backed down. They still have a lot of market share and strong sales as well. It's doubtful MS will just let the trend keep going in Sony's way (just like Sony didn't let it keep going MS's way). MS is going to have some good stuff to try and keep its second place position and expand its market share. Of course, I've still been questioning, how much more the 360 could have been had it not been damaged by the "quality issues" for the first 3 years of its cycle. I think that hurt the brand than more of us have factored in and with a cheaper PS3, it could be affecting value perceptions.