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"YES THEY CAN." However, Xbox 360 has them on a choke-hold. Xbox 360 still has superior online experience, they can price drop for another $50, and natal which i dont have faith on.

 Sony this year has very attractive exclusive such as GOW3, Lost GuardiAn Grand T, Uncharted 1-2.  Opinion Alert: i find their exclusives to be more attractive.

And in the long run piracy will help Sony sell consoles in the long run.However the games is the main concern. In 3-4 months we will see home-brew first, then furthermore games running of hardrives. Yes Sony can patch up to prevent individuals from using any online functionality forcing to update their console.

The hacking communities are at hard work. >.>