Both Microsoft and Sony are pretty crappy console manufacturers. Only Nintendo has proved their ability to sell fast, efficient and reliable hardware and not lose their shirt in the process. It takes some pretty useless companies to lose that much money this generation and or lose 3/4 of their market share. I don't wish for them to leave the business but damn, they are making a good case for it by themselves.

Couple of things.

1. 360 has been profitable for 2+ years. Yes they havent yet made up the initial losses on the original Xbox and Xbox 360 (with RRoD set aside), but by the end of this generation the Xbox 360 itself will be profitable.

2. If any hardware manufacturer were to exist hardware business I would want it to be Nintendo. There is nothing that the Wii hardware (not controllers) provides that the 360 and PS3 dont provide. In fact they provide more. Nintendo could continue to build incredibly successful software, but no need for them to provide hardware except for accessories.

Yes, I'm 70% sure that if they will jump into a "next generation", it will shortly end in them discontinuing their console.

The other 30% happens if Natal will be successful. This would mean that they still can innovate.
Better graphics won't replace innovation for any future generation, even a great majority of hardcore gamers are unhyped by the idea of even better grahics for more money.

Source? 

next time around they better not make the next xbox faulty as hell!! its kinda sad how the original was more reliable than the 360 was.

Thanks.  I have seen far too many companies come and go, to not notice this.  Go watch Bladerunner and see the Atari Mt. Fuji symbol as a reminder of things.  As it is now, the only constant company has been Nintendo.  Other companies have risen up and went down.  Nintendo is the only ones that have endurance and stick around.  However, what is top dog tends to be the one that guessed right on what the market growth area is.  Who knows what will be after motion control?  I am doubtful it is 3D as a major factor.

I will NOT be buying the next Microsoft system at launch.  I will wait a minimum of a year, and check and see if they do an RROD.  Getting bitten once was enough on that.

Microsoft Financial Disclosures.  The previous 2 fiscal years the division posted profits for the year. The 1st quarter of the current fiscal year the division again posted a profit.  2nd qtr ended 12/31/2009.

The PS3 is not on top. The Wii is. PS3 is third. Maybe you're reading the charts upside down?

The next Xbox will not be a faulty piece of hardware. The original Xbox was a rock and the 3rd version will go back to that form. The reason the 360 was so faulty is because MS had to rush out a system to beat Sony out of the gates. With this they gained huge marketshare from Sony and figured that was worth paying to fix the RROD problem.