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hmm i think people need to look at a bit more like this.

-- PS3 should start making money soon.
-- PS3 helped Blu-ray beat HD-DVD. Which is a HUGE victory for SONY ....
-- SONY can't of expected 70% marketshare this gen.... maybe they expected to dominate but i doubt they expected 70% of the inudustry.
-- Its SONY first attempt at a handheld + new console ( PS2 had already one hands down before PSP was released) ....

In the end i think when this generation ends people will note. SONY failed to dominate like they did with PS1 and PS2. But they managed to maintain a reasonable amount of marketshare and will enter the next-gen with a good system, games and without arrogance...

Nintendo i believe will end this generation dominate in sales and profit. But as far as games go they will find that the Wii will fair around the same as PS360. This will be due to various devlopering creating HD games. eg. GTA4 and then creating Wii games. eg. NMH. They will start next-generation with over-confidense but a strong product and an excellent reputation.

Microsoft with finally be profiting from their home and entertainment sector. The next-generation will give them another chance at dominating the industry and again they will learn from their mistakes. Releasing a cheaper -- but still powerful console which is reliable and puts user-friendlyness and reliablity ahead of apperance. As a result Microsoft will be in a good position game-wise, profit-wise and hardware-wise.

I think that this generation will also be longer than normal. Microsoft will not want to waste profitable quarters trying to release the next-box first. SONY will want to make the most out of their investment in PS3 and will wait for M$ to make a move and Nintnendo will keep the Wii alive until it reaches its sales limit...