It's funny and scary at the same time.
If anything Greenberg says happens to be true, that would mean MS has started destroying HD gaming for good.
The HD maniacs should feel the fear increasing in them already, even hearing what Greenberg says is a hint on the future, and it's not pretty at all.
A lot of people were saying that 3rd parties can ignore the Wii if they develop for XB360 + PS3 (+ PC too).
Now, what Greenberg says either invalidates the point of all these people, or it will be the start of HD gaming's end.
Eliminate PS3, and lots of HD games don't even make sense anymore financially.
You can be pretty sure that means all the japanese devs supporting HD will die even faster. Westerners will die a little less quickly, but will still die.
Besides, imagining some are crazy enough or have the strength to go on XB360 alone, that would mean that these developers will put all their eggs in the same basket. Which when the basket is MS, is very dangerous. They didn't hesitate to kill their own studios to be profitable.
Lots of HD games haven't sold enough on XB360 to make profit. So either MS didn't moneyhat and it means the devs are destroying themselves, or MS did moneyhat them. Well, if they moneyhat them, when Sony isn't there anymore, they won't get any moneyhat from MS, as MS will not have any incentive to do that: it will lead to these devs failure. So a moneyhat is very dangerous mid to long term, even if it has benefits short term.
This nasty battle between the HD consoles is ridiculous already, and to me, both HD consoles already killed themselves off. MS is mostly responsible for that. But clearly, both MS and Sony are losing the trust of most gamers. As I see it, you can't buy any console early next gen hoping that a 3rd party franchise will be on it.
You'll have to wait. You can't even be sure to not get a gimped SKU at launch. This will hurt first year sales of these consoles.
There's also no way you can get the new Wii market with consoles that will cater mostly to hardcore gamers.
To me, this gen looks more and more like PC against NES generation. It's more and more obvious, and I expect the same outcome, only worse (or better depending on the side).
IMO, what MS says here only hints to a bleak future for both XBox brand and Playstation brand.