We won't see a mass migration of console gamers to PCs. Consoles are dedicated devices, and are simpler to use. Put the disc and play. Unfortinately, gaming on PC isn't that simple. I know that a lot of people here will disagree, but we are users with more technical knowledge. An average user doesn't have idea what a good GPU is (or even what a GPU does) and thing like "update video driver" are completely cryptic things.

If there is something that Apple proved with the iPad is that people prefer to pay more for an easier to use device.

2nd place is "lose". There is no prize for the loser of the World Cup final, there is just one winner. But MS improved a lot their market position and it surelly helps if they wan't to win next gen.

Well, I mostly agree with you - out of 3, 360 does seem like most expandable for me too, considering it has least critical exclusives, and most of other 3rd party stuff is either on PC or PS3 (actually I care only for Fable and somewhat Halo - same thing with Ninty, Mario Kart and Zelda). It's easy choice for me though, being mostly computer gamer for better part of my life and having consoles as suplement and not main diet. But I think this gen proved that, although most of 3rd party games were also released on PC, there is more than enough people out there who either prefer console gaming (and console exclusives), or don't want to wait for time-delayed PC releases or just don't want (or don't know how) to mess with PCs, and honestly, I don't see that changing too much in next-gen. Fact is that Xbox brand have managed to attract lot of those people, and I can very easily see Microsoft repeating (and surpassing) that success again (for the reasons stated earlier). One way or the other, I think it will be very interesting generation.

Nope - as Sony helped develop it and make the discs, I think they will have to pay royalties for it's use in general. Even without royalties, they are still putting money in the competitions pocket by having to buy bluray discs. 

Internet is not nearly widespread enough to think that physical media can be gotten rid of for consoles. Most countries don't have stable or fast enough speeds to warrent no physical media. Why exactly has such a victory hurt Sony? Their console sold better then the xbox when adjusted for release date and they secured the next-gen media...What both companies need to work on is improving their utterly lackluster catalogue of games that are watered down, HD renditions of last-gen, otherwise gamers will simply not bother with games and find something else to kill time with. 

Adjusted for the release date and it's the worst selling HD console...

Because they lost all the PS1/PS2 profits, and then some.

Microsoft, on the other hand, has people paying a subscription fee to host their own games. They are geniuses. I don't think they care about an install base pissing contest.

1) For FPS' the mouse and keyboard are better

2) Graphics and load times are far better on PC

3) Modding capability

4)I actually can and do use my pc as a console. Steam big picture + motion joy + TV = PS3 wireless pad and dark souls on TV. 

5) I have a comfortable PC seat. 

Links? Sony losing money isn't the same as the PS3/bluray being destructive just incase that's your trail of thought. 

I'm not saying that, exactly. Just that Blu-ray is no DVD, and Microsoft doesn't give one shit about HD-DVD losing.

Edit: Guess it was just the PS2 profits. Sony's okay!

Grow their brand.
Sell a lot of hardware and software.
Get a lot of third party support.
Obtain a lot of money from Live.

And they lost. Riiiight.

Thats Sony fan propaganda....because we dont live in an alternate universe where they launched at the same time. That argument has been shut down year after year. You gotta take 2nd place the hard way....lifetime