I think Wii owners graduating to PS3 makes a whole lot more sense than going to the 360.

1. No need to pay extra for online. XBOX 360 LIVE is the casuals' greatest enemy. Casuals don't spend much on games to begin with, why upgrade to a system that forces you to pay monthly fees just to play online games. If you don't play games for that month because you are busy doing something else or playing WOW or something, you still have to pay for LIVE. You believe that? In a sense, you pay even if you don't play!

2. With Wii and PS3 combined, there are plenty of games to play. Plus, with PS3 exclusives and Wii ones coming this year, WiiS3 games will be awsome.

3. Blu-ray. Wii owners tend to be casuals in the first place. And casuals, relative to hard-cores, like movies more.

4. No Red Ring of Death.

5. The best reason of all: Being a WiiS3, you get everything next-gen-- you get next-gen control, next-gen gaming graphics, and next-gen movie format. WiiS3 is by far better than the Wii60.

Sony's gaming unit is also expected to improve amid a face-off with rivals Nintendo and Microsoft due to price cuts of its PlayStation 3 and structural reform of the business, analysts said.

"As the strenuous cost cuts are beginning to bear fruit, Sony might have posted a profit in the game business in the October-December quarter for almost the first time in two years," said Nomura Securities analyst Eiichi Katayama.

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