Yep, they also thought it was so easy to target iPod with Zune

I'm very interested in seeing what MS do for their 3rd console. Going by their OS standards, their 3rd version is usually the best before they screw it up again and the cycle starts again.

They would be stupid to be in this industry and not be aiming for the #1 spot. They have the resources to do it, question is if they have the creativity.

I dont think they will the wii is kinda unique imo.
Not saying that is good or bad.

So Microsoft wasn't targeting Nintendo this generation? They wanted to be in second again?

Well they will definately, they try to do it now with NXE and Software like You're in the Movies, Lips geting a big budget advertising all over the media. MS does know that in order to be succesful you need to broad the appeal.

If MS were worried about the PS2 because of the PS1 then they should be terrified of the Wii2.

With a browser and video streaming, the Wii is more a threat to MS now than the PS2 could have hoped to be. The more Nintendo keeps people away from the PC the bigger the threat they are to MS.

A couple of office apps, a higher res browser, music/vid programs and I'd see little use in having my PC (as long as Wii2 can play Team Fortress 2).

You speak as if M$ is a one headed animal.  The XBox brand is a tertitiary project in M$'s massive protfolio.

And I hope to god that they do not try to go after Nintendo, no offense to the Wii, but the majority of those games are rubbish(personal taste here) because of who they are aiming for.

@ jaggedSac - that's because it is a one headed animal. People were buying Ipods, which got them into Itunes and Apple in general, so they started buying Imacs. MS brought out the Zune to try to stop this. Sony started to threaten Windows and the Xbox was born

I meant one headed, as in could not do see more than one thing coming at a time.  As if distracting it from one direction would cause it to not see something from another.

Maybe I should have said one eyed.

ahh, I see. To a certain extent it is one eyed. The more money MS spent advertising and price cutting the 720, to try to beat the Wii 2, the less they would have to spend on improving or advertising windows, office etc