Microsoft: Discontinue the XBox 360 offering a refund to consumers, break up the company and open source Windows.
Nintendo: Try to join forces with Sony, use the Cell and Blu-Ray to create a PS3 compatible Wii 2 for release in 2010 (should then be much cheaper to produce). Allow Wii-mote driver to be included with the PS3 and ask Sixaxis Wii support in return.
Sony: Continue cost reducing the PS3, focuss on building a cheaper slimline PS3. Offer two PS3 models, one cheap one (cheap Blu-Ray player, cheap PS3 gaming entry model) and a high-end model with all the bells and whistles, including PS2 BC and integrated DVR upgrade option.