... So what Should the XBox team do now?

As I mentioned in my previous post, the XBox team has a bit of catching up to do, with the loss of the HD format wars giving the PlayStation a nice boost.

So what should they do?

Focus on the software. It's one of Microsoft's core strengths anyway. People buy value, so the BD-PS3 combo seems like a better value than the XBox 360 console when all other things remain equal. But by focusing on encouraging game exclusives, delivering better value as part of the Xbox by improving its software and add-ons, Microsoft can deliver better value in the area that matters most - games. After all, this is a game console war - if they can deliver a significantly better gaming experience, they can still win.

Update: And they're doing just that. This one isn't over yet. The next few months should be very interesting.