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I think they should wait until at least 2011 to bring out their next system. It gives them time to continue securing games in Japan which should eventually make even the most stubborn Japanese gamers take notice. It also gives them time to work in making more inroads into Europe and figure out the keys to success for the Xbox brand there.

Without laying that kind of foundation now their next system will have the same problems as the current one. They would basically have to almost start over from scratch in trying to entice Japanes and European (excluding UK) gamers.