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Part of the problem with an extended PS3 cycle scenario is it's vital reliance on multiplatform developer support.   If Microsoft really does shift away from 360 and on to a next gen format in a year or two (which actually seems to be an idea that most believers in Sony "10 year plan" also subscribe to), HD developers suddenly lose half their market... and I'm not sure if developing for PS3 solo is really a viable alternative.  That's the thing, PS3's future hinges on 360's future and even if Sony doesn't want it, the industry may have to move on relatively soon...