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I think people need to remember why Microsoft was profitable last year, 7 million copies of Halo 3. Other than that Microsoft has lost money every year from the xbox and that division also has the Zune in it to try to artificially inflate the numbers to make the xbox look a little more successful than it is. Even though I can't find the post, someone posted money made from the gaming divisions of all three companies a little while back since the PS1 entered the market and Microsoft was 6 billion in the red, Sony with a 3 billion dollar loss form the PS3 is still 2+ billion in the black and Nintendo is 10 billion in the black and never posted a loss.

Other than that I think, keyword think meaning this is an opinion, Microsoft is going to the be the only company that is wanting to release a new platform anytime soon. It is going to take a while for developers to learn and then maximize the PS3 and with Nintendo making so much money off of the Wii and with them trying to expand the market with nontraditional gamers, why would they want to try to push out a new system as frequently as "normal" that these new customers are not going to be used to? Hardware wise Sony is in a good position because of blu ray giving them a lot of space, Nintendo's only limiting factor is space but because they don't have the graphical specs they don't need as much space (look at how much they were able to put in for Twilight Princess), but Microsoft has similar graphical capabilities as the PS3 but with 1/5 the disc space.