Microsoft thinks Online is Key

Microsoft's goals with the XBOX & XBOX 360 is to become the dominant player in the future/imagined "Home Entertainment Center System" - and they're hedging their bets that online games will be the deciding factor in what consoles win; however, they're forgetting, as this study points out, that the U.S. has yet to reach the broadband saturation levels of Korea, or the cultural perspective on games as mostly social, competative entertainment. Most Americans, it appears, like to game casually - the hardcore gamer, unsurprisingly, is not the majority.

Sony wants Blu-Ray to become the dominant format, and this is part of their goal with the PS2, the study suggests - Sony knows that whatever future HD format wins will get mountains of royalty money.

The study goes on to talk about why Nintendo's recent strategies (it predates their "Wii" announcment) have been more viable, profit-wise, than even Microsoft's... but again, Microsoft is in the game for long-term goals. Nintendo needs to make a profit, and thusfar, it's been quite successful. Wii.