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Personally I don't think sony will ever recover the money they lost on blu-ray. They should have stayed down when HD-DVD had beaten them rather than opening their cheque book. I am really hoping by the time the next Gen starts that we are back to cartridges/online/solid state, there really is no need for optical media anymore, it is more fragile, increases the size of consoles and reduces overall reliability (moving parts suck).

The orginal poster is also wrong on just about every point. MS really don't care which optical format is used, they get licensing revenue regardless and Sony have no control to stop them using it. Also not sure where you got the idea MS is in a weaker position, there growth has slowed, but they are still growing, i.e. they are increasing their revenue and profit every year and have done so for the last decade. MS can have a 0% share of mobile and tablet and still grow, their biggest revenue is not the consumer, it is the enterprise space.