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MS didn't lose the war since they sold the most software this generation both physical and especially digital (since the 360 has more digital content then all other home consoles combined).   Also the 360 was never sold at a huge loss like the PS3 was for the first couple of years of its life cycle.  PS3 still was the big loser this gen they sold more consoles at a loss then MS and Nintendo combined.  Selling the most consoles doesn't make you the winner selling the most software is what matter since that is what generates the profits.