Add to that the potential for Apple to join the fray and things look even more dire for Microsoft in gaming. One of XBox's founders isn't too happy with the state of affairs either.

Apple seems to be coming down from the mountain that Steve Jobs built so I have my doubts that they can pull off an iPhone-esk reboot of the digital living room. Even so I hope Microsoft has some seriously big plans for XBox rather than just an incremental update or something wildly new but full of half-baked interfaces and shallow first party apps.