Ok, we've somewhat beat around the bush. There isn't a huge amount of doubt that on a technological side, the X-Box is a superior product. But superior product does not always become the dominate product (ask Coleco vs. Atari; Dreamcast vs. PS1, etc.).. Microsoft's first venture into the game systems (The Dreamcast, which ran with WinCE and bundled IE) even though it was a superior product, failed to get a large enough installed user base. The X-Box seems to be facing this as a challenge.. The X-Box is being outsold even by the Dreamcast and Playstation1 in Japan (taken from other threads: http://www.gamers.com/news/1132721 ) And the sales in the US is seen as flagging: http://www.theregister.co.uk/content/54/24789.html In other markets, the results are similar.. as in Australia, the PS2 is outselling the Xbox 2:1. http://www.itnews.com.au/story.cfm?ID=9512 The estimated installed user base is less then 1/6 of the worldwide playstation installed base, and the GameCube is also leading the Xbox when combined with international sales (especially Japan and Europe) In raw terms, developers are looking at the superior product of the Xbox and maybe saying "yeah, but with only 5 million of these in homes, vs. almost 30M sold PS2 units.. I have a much better chance of selling more games on the PS2" part of it is the time that the PS2 is around.. but part of it seems to be a horrible marketing strategy; the PS2 was able to build up strength in Japan before dropping in the US; whereas the Xbox went to japan late and is having trouble getting a foothold (if you're being outsold by the dreamcast, it's hard for developers to push a lot of money into Japanese converted games) We've been talking about how good the XBox is (which is not in question) but good doesn't mean success; if it did, the Dreamcast would have wailed on the PS1, the Sega Genisis would have pummeled the Super Nintendo, and so on.. The question is, how much $$ is MS going to keep at it? Word is, through tech magazines, they are contemplating no Nvidia for the XBox2 in favor of a complete Via or inhouse chipset to lower cost, as Nvidia is unwilling to lower their chipset cost any more to help MS.