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I don't hate the 360, but I don't recall 'just doing better than XBOX' as the projected goal (especially on launch). I now look at the 360 like I do the PSP: forget the original [unachieved] hype, let's enjoy the interesting things it's doing now.

In terms of future sales, read the story of the Commodore 64. The new C64 is the Wii: designed to be low cost; forget demand kept the price high so far.