Bach: MS Ceasing Xbox Development; Halo 3 Will Ship 'When Ready': "In 2005, the video game industry very suddenly underwent a drastic change from its current homogenized state. Nintendo has more acutely differentiated itself from MS and Sony than ever before, but in the coming generation, the two market leaders have created very broad differentiation of their own. Despite Microsoft's continual refusals, it appears as though the PS3 will outclass the 360 in raw graphical/processing horsepower. It is also probably safe to believe at this point that MS's online/community infrastructure will be superior to its competitor's online plans.

It's very possible to imagine a situation where PS3 games would be too powerful to be ported, Revolution games too interface-dependent, and 360 games too Xbox Live Community-centric—three consoles, potentially with three very different advantages. In such a situation, it's easy to understand why Bach has set his sights incredibly high for next-gen's Live penetration."