First of all, let me say that don't own a console at all.
Stepping back from it all, it seems that Microsoft should be due for a console refresh in the next couple of years. I know both MS and sony have said that this gen will last to 2012 or whenever - but with both consoles struggling to pull of high/medium settings at 720p and new hardware from nividia/amd/intel/ibm on the table Microsoft are in a position to refresh and make the PS3 insignificant before it has really taken off. Last time i looked MS can burn billions and not blink - Sony cannot.
Im no CEO or anything like that but;
If i was calling the shots at MS, I would fast track a refreshed console for late 2010 - 2011 using a similar, or the same, architecture but more powerful components ( so devs dont have learn anything new other than they now have more resources to work with). Also ensure backwards compatibility for 360 games, Slash 360 prices to a break even price. And take a big loss if necessary offset by dominance in the software industry.
Sony can do nothing - but hope people will buy their console based on price (look at the price!) or out of brand loyalty, or begin a console refresh of their own and write off the PS3. Sony, unlike MS, cannot burn billions like it was small change.
Chance for the new kid to sink the old champ? Any thoughts?
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