That sounds like wishful thinking. Microsoft will play ball with their next gen console and I wish that they get their japanese competitors out of business. Sadly, that is not likely to happen but MS is in position to hurt them both. Badly.

Question is though, will a $400 console sell in todays market? And, how much of a difference would such a console mean? If it's simply better graphics, I wouldn't think that's enough. Just look at PCs and PS360. Now, I'm no techi what so ever, so I can't argue your point =) I do think that there has to be quite a leap over Wii U for PS4 to distans itself and trying to pull gamers in that way... Leaving Wii U in the dust. But then We would have x3ox, which could be even stronger still...

You are all forgetting that nobody can predict the future. You can only watch current trends and try to anticipate, you are trying to predict something without having all the data, you don't know what kind of console PS4 and 720 will be. 

I agree with most of this post, with a couple of exceptions.

1.  Sony Entertainment is profitable for Sony, which could become a blessing or a curse.  They may see the need to maintain their current market position, regardless of cost, or go cheap next gen so they don't start losing money in a profitable devision.  Pay attention to share holder meetings, not forums, for the answers to that.

2.  Microsoft has already launched surface, and I believe developers will use surface and the Wii U pad interchangeably for easier ports.  Sony also has PlayStation software on cell phones and tablets, so expect all three to be used similarly.  Difference is, Sony and MS will require gamers to bring their own tablet, many with varying specs so developers will have to play to the lowest common denominator.  Parents won't understand why the $100 tablet they bought Bobby at Toys R Us doesn't work with certain games, and corporations are well aware of the impact to sales if they don't address those concerns-even if ultimately they decide to ignore that group.

3. I think Microsoft will do harm to themselves by splitting up Xbox users into two systems. A lot of people bought an Xbox for its media capabilities, and buy occasional games that come with a lot of hype.  With a set top box, they won't be able to purchase console games.  Many casual users of the Xbox will be content with cheap app style games, which will reduce the overall install base for traditional console games.  It can work-Apple historically does a good job cannibalizing their own products, so it will be interesting to see how this plays out.

Question is though, will a $400 console sell in todays market? And, how much of a difference would such a console mean? If it's simply better graphics, I wouldn't think that's enough. Just look at PCs and PS360. Now, I'm no techi what so ever, so I can't argue your point =) I do think that there has to be quite a leap over Wii U for PS4 to distans itself and trying to pull gamers in that way... Leaving Wii U in the dust. But then We would have x3ox, which could be even stronger still...

That sounds like wishful thinking. Microsoft will play ball with their next gen console and I wish that they get their japanese competitors out of business. Sadly, that is not likely to happen but MS is in position to hurt them both. Badly.

Hardly wishful thinking but it is a bold prediction on my part. Microsoft is only in the position they are now because of mistakes sony made. Microsoft did everything right but it was sony's ingenious idea to price themselves out of the mainstream market that caused microsoft to become so popular. Sony have had two sluggish launches to learn from. Microsoft have less expirience in this market then the others do.

They will seize the us market by storm. They have everything that market wants. But you need to consider that they won't only be fighting a much more determined sony this time. Nintendo made some crucial errors with wii. Mistakes that have now been corrected. Nintendo have made the best possible use of the time they have as well. By the time the others get here nintendo may be too far ahead there for the others to catch up.

The siginificance of that? All the japanese pubs will be knocking on wii u's door first.