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couchmonkey said:

This is an interesting conundrum for Sony. My two cents is Sony can dismiss Microsoft at this point because MS no longer cares about console wars...that’s why the exclusives suck and that’s why we hear rumours of Xbox live coming to Nintendo.  the big picture items are cloud and mobility...cloud makes your hardware specs less relevant by delegating processing to servers, then again as som3 others have pointed out, cloud is slightly at odds with mobility until you get cheap enough data plans in all the major markets.

I think Son6 should tackle the hybrid market but obviously it will be a challenge.

The thing about Cloud and mobility is that although they'd be at odds in the current climate a platform will still benefit from having both, for example Cloud would still boost a device when it's used as a home console so regardless it's still a problem for Sony who are in the traditional space because the would be devices in the home having access to games that are above their specs. These titles would be on shaky ground the second the device becomes mobile yeah but then it'll have its own library to make up for that dismissing MS doesn't make the problem go away as you still need to deal with its implications, this is kind of what I touched on earlier in that if it happens it's an unorthodox situation that Sony have never dealt with and they tend to have trouble with such cases because the's no text book response to these situations you have to do something well out your comfort zone.

This is before we get to the rumours of Google making an entry into the industry themselves.