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GoOnKid said:

Know your enemy, they say.

They're not really competing head on these days. 

Sony will control the traditional home-only console market. 

Nintendo will have the dedicated portable market, only now the portables can also play on TV. 

Microsoft will provide the token "competetion" to ensure Sony doesn't get too lazy. 

That's basically the equilibrium of the market now. It's partly why I think at least with Nintendo, Sony/MS are more friendly these days, even Nintendo is friendly to MS (moreso than in the past). They don't really view each other as direct competetion.