My personal take on things: A lot of the features that we see on Xbox Live came as a result of competition from Sony. I think game prices for the 360 would still be pretty high (about $400), no features like ESPN, full game installs (awesome feature, btw) and Last FM on the 360, and no new re-designs that feature Wi-Fi, HDMI, or better reliability.
The 360 would be going head to head with the Wii but I'm not sure they'd have tried to enter the motion control arena. M$ probably would have been satisfied owning 100% of the HD market and left Nintendo to cater to the lower horsepowered motion control market.
Competition is good for the industry. It always has been. Without worthy competition, maybe we'd still be playing games on cartridges and Nintendo wouldn't be as innovative as they've been forced to be. Maybe game prices would be at $80 a pop. Maybe graphics wouldn't be as impressive as they are, now. There's a couple of things that are better for the whole industry just because the PS3 exists. There's probably a few things that would be standard next gen that simply won't come to pass because the PS3 isn't a huge success. Maybe "Folding Home/Life with Playstation" and "Playstation Home" would've become industry standards, next gen. Who's to say. We're not from the future......except for me. I'm from the future. Oh, and something pretty bad happens in 2013. It's probably best if I don't tell you guys about it. I will say this: when Space Obama makes a decision, it may be in your best interests to listen to him.
