Sounds like Damage control

No, it's as reverie said earlier:  FUD.  It's the sort of tactic that Microsoft uses all of the time.

 This is far from damage control, and has nothing to do with MS being in fear.

Who was it that decided 'power' was how you define a next generation console and in the future when power and graphics cannot be improved does that mean any new console cannot be called next generation?

The odd thing is that the systems which have hit a point where their sales have slowed down dramatically are the PS3 and XBox 360. Now this slow down is probably caused by their prices (the number of people who are willing to spend $400+ on a console is pretty limited) but that is related to these console's "high processing power" and "rich feature set" strategy.

Most consoles follow the same pattern - Big sales in November/December, slow sales in Spring. Except for newly launched consoles (like the Wii, and the 360 two years ago)... well except for the PS3..

I think power is used as reference, because that's how it's been done in the past. Wii has somewhat changed the rules.

Also I think that Wii-motes are the future and that the other Consoles will create their own "motes". Specially for sports games, maybe even EA will develop it for it's games? maybe create packages sort of like Guitar Hero?

Neither Microsoft or Sony view Wii as a threat, and neither ever will. The way Microsoft and Sony talk about and react to each other shows fear. Nintendo is in its own market, as it has been for 10 years.

Whether they view it as a threat or not, the Wii is a threat to the PS3 and XBox 360.

Back in the day, Automobiles were expensive luxury machines that were only owned by the super rich. When Ford came along with their assembly line they produced a far inferior machine (in practically every way) but were able to sell it at a far lower price. The result of this was that Ford opened up (and exploited) a massive new market and (at the same time) pushed most of the existing companies out of business; most of the companies that remained became smaller and produced a niche product.

...Exactly where is Moore's point invalid. He has a very valid point about Wii sales: Will they continue at breakneck pacing, showing that the Wiimote is not just a gimmick device, but the way we will experience next-gen gaming forever (in the same way optical media helped us experience so much during the PS1/Sat years), or will it be something more akin to the "wonders" of the 64-bit Atari Jaguar, or such? Time will tell. This console battle isn't to the swift-seller, but the long-hauler. Each company has plenty of time to fix their weaknesses, and see where the market really wants gaming to go. Only about 10% of gamers have bought next-gen systems compared to last-gen. They haven't decided yet with their wallets if the Wii will be the true next-gen or not.