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yushire said:
So even the last generation consoles such as the gamecube and the original Xbox can still push their graphic capabilities, and the latest games so far in these consoles arent what these consoles capable of.

Does it mean Microsoft waste their money on xbox 360 just to compete with the PS3 even their original xbox still have much to prove? No wonder Ninty says that gamers dont need more high end graphics consoles such as the 360 and PS3, Microsoft dont even tackle the potential of the original Xbox

Arguably, Microsoft needed the Xbox360 to compete with the PS3--the problem is that they rushed it to market too soon and killed the Xbox too early.  If they do this again, they'll be rushing themselves right out of the gaming market altogether.  This is what hastened Sega's demise.

They released the 32X, then less than a year later, jumped the gun with a sneak-attack early launch of the Saturn.  And only a couple short years later, they rushed the announcement of the Dreamcast which caused already unhappy developers to drop Sega entirely.  The Dreamcast launched with less support than it should have had.

Sony is doing the right thing in keeping old consoles alive on into the launch and beginnings of newer machines.  Nintendo was smart like that once, when they continued to release the revamped NES and NES games into the lifecycle of the SNES.  They let the N64 fizzle and garner a bad reputation.  I think they had no choice but to kill the GameCube prematurely because the Wii isn't substantially more powerful.  Also, it helped them because then there's only room for one machine--the Wii--for consumers to choose from.

Sony is keeping the PS2 going a little longer than they should, though.  I believe one of the obstacles preventing the PS3 from really garnering success (aside from it's ridiculous price, lack of AAA-quality exclusive titles, and lack of exclusives in general, and lack of consumer-aware differences from the cheaper, more supported Xbox360) is that they gave consumers a choice for too long.  "Oh, why should I spend $500 on this Playstation, when this smaller one is only $120?  That's the most popular system anyway, right?"