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I think Europe will be the biggest market for VG this gen. China isn't ready yet to support Asia. There is a huge potential in eastern Europe. Shit, in Poland alone we have more than 38 million citizens and Sony sold only 500k PS2 here. It will change. Same with other countries like Hungary, Romania etc. People are getting richer. Slowly but consequently.
 
Europe thanks to diversity leaves a lot of space for developers. I think you can't win this gen without Europe. This is the ultimate reason why MS will end up third IMHO.