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2008: Year of the PS3 and Wii.

Affordable HDTVs will be the norm, BluRay will take off, and cost reductions will drop the price to $299/299EUR by fall of 2008 (we may even see a $349 model by spring). Sony is already getting a huge boost thanks to the strength of the euro - all those Eurozone sales means plush margins. Microsoft simply doesn't have the studio network, next-gen media capacity or long-term strategic vision necessary to compete against Sony. That's not the fault of its game division, which has worked hard, or its console, which is a fine platform, it's the fault of top management's penny wise, pound foolish policies.