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You really should read less into the opinions of bad western analysts.

Nintendo might not be the most atractive piece of stock you can buy, but as a company whose purpose is to make operational profit, they are tremendiously solid. Also, they have a huge stash in the bank that can help them through any situation.

The 3DS may have had a slow start but it has without a doubt cornered the handheld market, crushing all the competition. Did the handheld market shrink because of tablets and mobile phones? Maybe it has, but Nintendo made up for it stealing the market share that the PSP/Vita could have.

The Wii U is looking like a very impressive device if put to good use. If one thinks that the controller can be used to emulated a keyboard, you will see the incredible potential the new console has to house MMORPG's, something almost unpractical on todays consoles because of controller issues (cant beat mouse and keyboard, but the WiiU controller can be used to emulate the keyboard part and the analogs to make up for the mouse).

Also the technology is reaching a bottleneck where its difficult to see the improvements from one gen of systems to the other.

I'm gonna be honest with you. I think Nintendo is in a good position to win next gen (controller and free online play), Sony is second (free online play) and microsoft will come dead last (failure that is the kinect to hardcore gamers, lack of compelling first party software and online play you need to pay a fee for).

The microsoft system might appeal to the mainstrem when it gets cheap, but at a high launch price i dont predict good things for them.

So the thread should read: Will microsoft go under on the games business if they fail to impress on this years E3?

The answer to that is yes, and i think they wont be able to impress anyone. They just dont have the arguments.