I feel like Sony is going to be the least arrogant going into this generation and I think that's a good thing. Microsoft is probably thinking they're going to push for domination, which it seems to me is where everyone screws up. Both Sony and Nintendo tumbled hard after thinking they were big enough that they could dictate to both the industry and to consumers.
Right now, if I were a Microsoft fan, I would be a little worried that they might try to bite off more than they can chew. If they become too aggressive, say with some kind of totally integrated Kinect interface, then they run the risk of falling flat if the technology doesn't take off. Remember, the Xbox grew market share mostly by the grace of a year's head start but it had by far the lowest sales rate.
Nintendo, I believe, will be fine. Their software will hold them above water even if the hardware fails to go viral.
