They compete with apple and google in their core business and more directly. Sony is no longer a threat as far as i can tell. Sony right now needs to focus on sony as they have had a bad year.

I would say they are competing agaisnt all three in the same way as all three are starting to fight alot of the same battles. Apple/Sony/Google/MS all want control of the same things, your living room and your office and your mobile computiing needs. I am excited for this as it should mean a lot of new ideas coming about and a lot of great deals as they try to out do each other.

MS is too slow, PC isn't dead by any means, and it's growing, but the market outside of it is growing faster, at this pace MS' two near-monopolies, Windows and Office, will become, despite growing, less and less relevant, while MS presence in the other markets can even become big and healthy, as XB360 showed, but it won't ever reach the overwhelming leadership Windows has. This applies to the living room too, when the main competitor was Sony, MS could count on its foe's errors and its own brute force, but now the competitors are too big and too many, MS wasted too much time chasing the wrong one, that neutralized itself almost by itself.

So just because Xbox gets a few apps like ESPN and UFC it suddenly competes with Apple? Doesn't PS3 have a web browser, Vidzone and Music Unlimited for a long time now?

Well, the American living room. Almost all the apps announced are for the Americans. MS only focusses on America. Kinect voice control doesn't work in Dutch after 2 years.

60 apps doesnt sould like a few to me

Fixed it for ya.

A lot of what Nintendo and MS are doing , Sony has already been doing for some time. Granted they havent pushed it like they should so they have lost the window of opportunity. Sony seems to be moving to a more open environment. Making their devices fully Android integrated will hurt MS, Nintendo and Apple. Android has the largest userbase currently in the cellphone and tablet space, a space where MS struggles. Windows 8 is absolutly horrid for an OS as is Windows phone and will not do well making it even more difficult for MS. All Sony needs to do is launch a good console that is easy to dev for and hits a good price point. If they do that and integrate with Android they will kill it.

Define sitting pretty? With the "lead" of 2 million consoles, I wouldnt say they are exactly dominating anything. The PS3 is still used as more than a gaming device by a larger audience. Remember a lot of people bought a PS3 due to Blu-Ray. The 360 is a DVD player with APPS. The PS3 is a Blu-Ray player that outputs DolbyHD and DTS master audio, 3D games and movies, video rental, music unlimited, etc. They also offer Sunday ticket for those without Directv to name a few. Their are a lot more features including internet browser. 

You are joking... right? 60 apps... thats NOTHING when compared to Apple and Google.

Win 8 doing bad for a phone? What about the positive reviews of Nokia Lumia 800 and 900? Heck they were doing better than what most people expected. 

___

Anyway.

MS has basically already done that with Xbox Live games available on mobile and tablets. Even more with Xbox Smart Glass. I think that having the playstation intigrated will hurt it self more than it will hurt others. It will cost them ALOT of R&D costs to do what MS has currently done with the Xbox and windows mobile. Money that Sony doesnt have right now. Plus there are more devs that specializes on moblie gaming than a mere "playstation moblie" brand in the android space. Plus Sony would want it to be in Sony Erricson devices ONLY to boost sales of their own brand and not make it available on any other phone models. 

Plus gamers wouldnt want a laggy Android os on a playtation console. Much more so that they risk patent entanglement with google and a potential death blow patent lawsuit coming from MS. 

Sorry, i mean 60 apps on a console. 

Were talking about a cable box competition not a moblie competition. 

By giving the Xbox more apps. It potentially blocks Google tv and Apple Tv from gaining a foothold on that front. As many reputable websites has said.