IMHO, MS has the worst strategy out there. It wants to concentrate on the US market with a mid-priced console while offering the product to other markets and wants the fattest markets out there. It also offers online because the fat markets will go for online more and b/c online is the highest margin product for MS, meaning that when they sell online stuff, they'll get more profit from that versus a console or a physical copy of a game sold at say, walmart.
The problem is that Sony can just copy what MS has done and they've done so. Sony is about to offer a premium services for its PSN, it has Home, and will get the version of Netflix that doesn't require a DVD to put into it so it will be a much better netflix soon for the PS3. MS needs to figure out how to offer more value to the customer and i' ve talked about Natal a lot, and i'm not impressed with what i've heard, not that I'm impressed with Move either, but in my opinion both will fall far short of hype.
