Microsoft's Entertainment and Devices division not only turns its first consecutive profit, but projects to be profitable all year.

Best Buy, for reasons undisclosed, is dropping the 80g PS3; is this forshadowing a new model? Or is the 40g doing that much better?

In Japan, Sony axes the 20g and 60g PS3's (finally), noting the new hardware configuration of the 40g will help pave the way to cost reduction and profitability.

Sony is now reported to be producing PS3's at less than half their original cost (~$400 rather than $800+).

GTAIV is coming out soon and is cross-platform. Its also expected to out-perform Halo 3, and is probably will be one of the biggest system movers this year.

Things are shaping up nicely. I fully expect by the end of the year we'll see incredible pricing and bundles for the PS3 and 360, with another round of good sized price cuts. I'm sorta hoping that Sony does at least a $50 price cut coupled with a bundle. Microsoft? I hope they do at least a $50, if not $75 price cut, across all the 360's with an updated bundle for all SKU's. Things seemed primed and pumped for the console makers to start getting serious about expanding past the small "core" audience and trying to get more mainstream (where the PS2 and Wii reside, marketwise).