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Think about this:

What if in 2-3 years or whenever the next gen consoles come out, you either have the option of purchasing the new consoles at 400-600 bucks (or whatever they end up being) OR you can KEEP your CURRENT console and play the next-gen games on them via an On-live type service for a monthly fee! Provided you have a fast enough connection of course.

That way, if you don't have enough $$$ to make the 400-600 dollar investment right off the bat, you can pay a monthly fee to still play the next gen games until you can afford to fork over the dough for a new console (or the price comes down).

Either way, Microsoft and Sony would win because they make $$$ either way. They could make the pricing structure so that either option would be profitable for them.

I think a model like that would be fantastic and could really work with the right tweaking and prsentation!