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I guess it depends on one's priorities.

To be honest, I think Xbox Live and achievements have set the industry backwards.

As far as internet connectivity goes, I much prefer local multiplayer, but I certainly see the utility of online multiplayer. As someone who lives thousands of miles away from his friends and family, I definitely appreciate online functionality.

And, finally, multimedia applications are a nice bonus, but we're talking about a video game console here. In that context, multimedia apps are the definition of superfluous.