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kaneada said:

This is very plausible as well, but I think there will still be a huge market for shared screens in private living rooms, espcially in America. I can't really think of anyone that I know that doesn't have multiple game systems hooked up to a 42" screen or better. I think that starting with handheld AutoSS3D is a smart move due to the low risk and cheaper costs that goes with handhelds though.

Yeah, I should clarify that I don't think the shift will happen overnight, and I do think there will always be a market for that "shared screen" experience at home, or at least through my lifetime.  But more and more, people tend to consume content through their own screens, and if you look at these things generationally, it's overwhelmingly happening for kids.  Rather than just plop in front of the TV when they get home from school, they're using their phones, ipods, DSes, laptops, etc.  And they're also moving to social experiences on these"private" screens, which actually negates the traditional advantage of a shared screen (ie: shared experience).  I don't think it's at all unlikely that a group of 8 year old might prefer to watch, say, Toy Story 3 in 3D together on their own 3DSes rather than watch together on their dad's 3D Panasonic widescreen.

In Nintendo's case, I actually don't think it's going to very long until they converge their set top and handheld platform streams either.  3DS may be too soon, but I could see it happening within another generation or two.