I just feel the lack of 3rd party exclusives is not far fetched for the next generation. Partly from cost and partly because, using this generation as an example, unless we're talking the Wii or high end PC (of which only a small user base can probably run without upgrading), the quality between Microsoft and Sony products is negligible in the eyes of the average consumer and only a point of contention between tech heads and fanboys; and I don't really feel like that's going to change this coming generation either. We'll still see it strong in handhelds and online gaming, but I feel 3rd party exclusives will be more rare on high end consoles this coming generation, unless developers change how they make games, or there is some kind of "miracle programming tools" that will allow even garage gaming studios to make what looks like AAA titles with full HD and top of the line audio, all with a simple kit and a year to develop it.

My own theory is what I stated, that features and content will be more important than tech in the long run. Nintendo has a chance if they get their together and do a little catch up. While I feel Nintendo has the better handheld devices and tech, I do feel that Sony has one them up with the PSP/PS3 compatibility link up. Its better for 3rd party developers as well cause it cuts down cost. If only they had better memory... 8GB is just not enough.

I also don't feel like Nintendo is going to have issues making games for a higher end system. Of all three companies, it always seems like Nintendo's1st party developers understand their tech better than most of MS and Sony's people do. The PS3 is five years old and Trico still doesn't have a release date? My point is that I wouldn't underestimate Nintendo in this regard, beyond the online element, I don't really feel that Gears of War 3 and God of War 3 require some special elite programming skill that was not in Mario Galaxy or Twilight Princess. I also feel that the "HD excuse" from Japanese developers is simply just an excuse to hide the fact they're either out of ideas or bowing to Sales and Marketing departments who are out of touch with the gaming market.

When SE President Wada, who's entire history at Square and Squenix was being an accountant and corporate businessman is trying to tell the rest of the Japanese gaming industry, what the future of gaming is going to be and how the industry will survive, that right there should be a red flag to people.

We'll have to wait and see I guess. Nintendo may be getting a head star but that just means Sony and Microsoft can use them to test the waters of what the gaming industry and community is looking for in the next generation.