People need to think back to when the original xbox was coming out. Microsoft at that time made it clear that they wanted to control the living room. When the PS2 was a dvd player and tivo's were getting more and more powerful microsoft made a decision. They would compete in the market with a game system. Ofcourse it wouldn't ONLY be a game system. It would offer movies rentals, live tv, etc. 

Look at some of these links:

Engadget says "Hello PS3, goodbye Tivo"

Here is gizmodo saying apple tv's main competitor is the xbox 360

So, if you agree with these statements, now lets discuss if the xbox is winning or losing!!!

They're losing, obviously, to Nintendo. Nintendo controls the living room. The masses aren't taking to this "one box does all" thing. They don't care. Most living rooms consist of a TV and a DVD and or VHS player. If a console is added, come the end of this generation, most will be Wii's. Microsoft isn't controlling a damn thing and neither is Sony. The 360 failed to control the living room the second HD DVD took a nose dive and Sony isn't going to get more than a foot in the door because Blu Ray's just not that big a deal yet. Many don't have HD TVs, and even many that do don't actually care about Blu Ray, or can't afford to buy in. I'm not even speaking on the PS3 itself, because that's understandable. The prices of Blu Ray movies are outrageous.

Well...that about wraps this thread up, I think.

Er...how about that local sports team?

I agree with most points onymeth, people seem to be rejecting the one box does all thing. But I don't think Nintendo is winning the living room war (although they are certainly winning the game console war)

I believe apple is winning. When you control the purchasing of content and the players for that content you are in a good spot. Itunes, Appletv, Ipod, and now Iphone. They are winning.

Since DVRs are becoming standard from Cable companies (they are barely more than just a cable box), I don't see how a product that cost hundreds of dollars can compete with that.

And then there are the wackos with me who have huge HDTVs but no HD content and couldn't care either way because we bought our TVs for the inches and not the pixels.

I bought the 360 to play games on my 42' lcd. It has not let me down so far. I also stream video and music from my pc through the 360 and into my 7.1 ss system. M$ has managed to bring an amazing lineup of games to the 360 and is looking to continue the trend. Hopefully M$ will announce a NetFlix partnership at E3.

$4 - $8 more is expensive?

Also if you ever pay attention to my Blu-ray sales thread so far Sony has captured about 6 - 7% of overall sales in the top 20 each week and steals about 8+ million dollars of revenue from DVD sales in the US. For a format that is a bit over a year old it is growing faster then DVD did, and yes I did post a link to a graph in that thread that showed that in the UK Blu-ray is growing faster then DVD did. I'd expect that by the end of the year Sony will control around 10% of the worldwide hard disc based movie market.

Yes considering most of the dvd's I buy are around the $15 range.  That is an increase of %25 - %53.  Blu-Ray sales are growing faster than DVD sales, because the blu-rays are not as different from DVDs as VHSs were from DVDs.  People are more willing to change over.  I could also say that there are more people in the world as well.  Blu-ray will become bigger than DVD, but not until their player prices come way down.  PS3 is helping to drive the disc sales up(I know they do not include games).  An extra 13 million from a well known game console doesn't hurt(especially considering it is the cheapest blu-ray player out there, or at least it was for a while).

MS is losing, Nintendo, as Onyxmeth wrote, is winning, Sony currently is only starting playing, Blu-Ray is still a niche, but they were far-sighted and current losses will become a victory in the future (a victory that will hurt MS a lot, but won't disturb Nintendo at all).