if they don't sony will be very happy

They not only need to release a good year before the PS4, they also need to consider hardware issues: We don't need another RROD fiasco. Period.

If they like money they wouldn't.

 Ya, I think 100% backwards compatibility is key for the next xbox.  With stuff like XBLA and DLC (stuff like Rock band songs especially), people won't want to lose all their games and downloads.   People want to buy the new xbox, take it out of the box, spend 20 minutes transferring their HD contents, then log into live (with the same gamertag) and play a 720 game for an hour, then pop in Call of Duty Modern Warfare 2 (360 version) and play with their friends who haven't upgraded and talk about the 720.

 I disagree. Where do you think Microsoft would be if they had launched the 360 at $600? Even a year in advance? Sony's reputation is the only reason they can even survive such a move, MS isn't there just yet.

As for the 1 year head start, I think Nintendo is likely to have it. They didn't lose money on any consoles, so it's really not hurting them to spend money on the R&D of their next console since early in this generation.

I think it's critical MS release ahead of Sony again, however. The headstart is a massive advantage, and there's really no way for Sony  to release earlier. Some people are suggesting Sony just throw in the towel for this gen and wait for the PS4, but this is without considering the fact that a PS4 would be extremely expensive to create and produce. Sony has little choice but to make this generation a long one, due to their current financial crisis. MS doesn't have a similar problem. They can ride the 360 a couple more years, and launch their next console ahead of sony without rushing their product to market like last time. They'll also be able to keep the 360 in production/making profit for a while after the 720 releases, instead of sunsetting it almost overnight like the original Xbox.

i predict next gen will be microsofts...

No one thinks that Sony will launch their console close if not before the nextbox and at a cheaper price? why do you think they invested so much money in Blu-ray and their Cell? whats Xbox going to use next round as a format? DVD's? or just straight Digital Distribution? because I know they Wont Adopt Blu-ray with them being so negative about it

It dosen't matter, next gen xbox will always superior than ps4,5.....

It’s not as if Sony is completely devoid of control when it comes to their release date either…people talk about the 360’s head start as an excuse to defend the PS3’s sales numbers, instead of viewing it as ‘wow, they waited a whole year, no wonder they’re in this position.’