I think Durango is going to take this.
MS has proven they can sell to both the hardcore and casual market and the 720/Durango is going to be the holy grail fusion of that -- it's the console Apple would make if they were interested in the game market.
But since they're not, this is Microsoft's to take, the broad functionality of the 720 and the way it will interact with your TV IMO is going to be a game changer.
And MS will always make sure they get all the big third party games and pump out enough Halo/core content too. Especially early on in the product life cycle to get early adopters.
Nintendo reminds me of Blackberry ... in a lot of ways, Blackberry really made the "smartphone" mainstream, but they were too conservative and slow moving of a company to take that to the next level, it took Apple to move in. MS has been frustrated by Apple in the phone/tablet arenas, but they've also learned from Apple, and now I think they are going to take out a lot of their frustration on Nintendo/Sony.
