Despite what we all might think, Sony is still the strongest going into this generation. It's hard to tell right now whether or not they will come out on top. As for this holiday season, the 360 is likely to come out on top when it comes to software purchases simply because there may not be enough PS3s to go around.

As for the long run, that's even more difficult to predict. While Halo is apparently the strongest non-sports franchise in the US, Sony outnumbers Microsoft when it comes to its own exclusive heavy hitters. Halo alone will probably sell more in the US than a Metal Gear, Final Fantasy, God of War or Devil May Cry would individually, but when you put all those together they'd sell more than Microsoft's only big gun. The 'loss' of Ninja Gaiden doesn't help Microsoft either. Sony still has the stronger potential, as they have the most exclusive 'big name' franchises among the hardcore players. Microsoft has a chance to establish new, potentially big franchises such as Gears of War, and the Mass Effect and Too Human (if it turns out to be good) trilogies.

However, the other 2 franchises, which are probably *the* biggest franchises in the US, are shared between the 2 systems. Madden has always been multi-platform, and now that GTA will be on both systems on the same day, Sony has a gaping hole in their previously unstoppable (now merely overwhelming) arsenal.

Nintendo has a lot of work to do with the Wii. It won't initially win over the PlayStation generation, the ones whose first RPG was FF7 and have never played Zelda, or the 'mainstream' Madden/GTA players. It has the potential to bring in the casual gamers, and people who don't even play games, so if they do pull it off then they could be the big winners. This kind of growth will help the industry as a whole if it actually happens.

As to who has the most to lose from a failed system, it's definitely Sony. Nintendo instantly profits from every Wii sold. Even if it fails the DS is so hugely successful they wouldn't be hurt too bad. Microsoft could lose money for eternity and it wouldn't affect them much. Sony has invested a lot in the PS3: The cell chip, BluRay, etc... if it flops, it will really hurt. Neither of these 3 companies will be particularly crippled if their console fails. Sony and Microsoft have other products outside of gaming, and Nintendo dominates the handheld market.

So to restate: PlayStation is still the strongest brand and has the most clout behind it. Microsoft has some potential but does have quite of work to do if it wants to overtake Sony as the market leader. Nintendo is the wildcard--it isn't even trying to 'compete' with Xbox and Playstation, it's aimed at a much larger (but difficult) market.