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Fumanchu said:

Yeah I don't see Microsoft being able to compete for the crown with them failing to gain a significant share in Japan and most non-English speaking territories. 

One thing that just came to mind is that if Nintendo are "promoting that 360 games can be easily ported to their next console" -  could possibly signal that the PC, Xbox and Nintendo will be easy to cross-platform develop games for, leaving Sony in a precarious position with their different cell architecture, which they won't want to drop and lose all PS3 backwards compatibility.  With development budgets set to skyrocket again, will they want to position themselves as the 'extra expense'?

Maybe I'm the weird one - but I don't think the mass consumer knows or cares about 'first party studios', when Microsoft still gets plenty of PC game crossovers and buys exclusives/timed exclusivity.  I think the forum dwellers harp on this point, most equipped with a gaming PC and are a very vocal minority.  

Well, I think Sony will make the advanced Cell easier to develop on.  Kinda like how they made the NGP's architecture easy to develop on.  So, I don't think that should really become a hurdle for it.  I mean even with the Cell this gen, the PS3 has started to get very good support after '08.

And you are right, the mass doesn't know or care about first parties.  They do care, however, when they see a game/ad and on the box/tv it says "Only for the ___."  Which, for the most part, those games are made by first party studios.