If handhelds are the way to go, why isn't Microsoft looking into coming out with a version of Zune, and adding Xbox-style gaming for that?
Because the iPhone is going to crush the Zune? Wow, according to my siggy, it seems like Microsoft's almost at the 10 million mark as far as how many consoles they sold. Kudos to Mr. Ballmer and Peter Moore, and all those guys in Redmond, WA.
Yes. Congratulations on marketing a console that sells worse than the Sega Dreamcast. One would previously not have thought that possible. The fact that you can't do 720P DVD playback on the PS3 is the most grievous mistake Sony could make if the intent was to flog it as a cheap BlueRay player.
Also, the ability to play back Blu-Ray discs was probably a big mistake aswell.