All of these will be completed by the end of the year. Its just a matter of when in the year these goals will be accomplished.

1. Release the Xbox 360 Elite

    This will silence those people who say that the 360 is inferior to the PS3 because of its lack of hard drive space and a HDMI port. This console is also rumored to run cooler and will cost less then the 20 GB PS3. MS, the sooner this hits the market the better. This will also make the TV and Movie service on LIVE prosper as people will have plenty of download room.

2. IPTV

    This will broaden the 360 portfolio and give consumers another reason to chose the 360 over the PS3. Advertisers like AT&T are also likely to offer massive 360 discounts in exchange for a long-term IPTV contract with them.

3. Price Drop

    It is highly likely that there will be a price drop. After all, its been out for a year now. The question is when and by how much. This will be a severe blow to the PS3 and put some competitive pressure to the Wii.

4. Halo 3

    Here me out lol. Love it or hate it, this is Microsoft's best weapon this christmas. There are independent studies that origional Xbox owners are slow to adopt the 360. I bet you have heard that half of 360 owners did not own the origional. This is because they are content with games (like Halo 2) that are playable on the origional Xbox. When Halo 3 is released, expect a surge of 360 sales from loyal Xbox1 fans.

5. Keep forking out the dough to developers

    This is why I love Microsoft, they got the cash to back themselves up. They are marketing like crazy. They are funding developers games in exchange for making them exclusive (Crackdown, Mass Effect). They are also buying off developers to make their once exclusive franchises multiplatform. 

     All these steps are in the works to be completed by the end of 2007. Console wars are fun.....