Microsoft isn't spending $500M to enter the console market just to sell games. Both Sony and MS recognize that the XBox/PS2 class devices are the grandparents of a future consumer level home internet gateway device.
Once 1394 and HAVI (http://www.havi.org) fully catch on, the grandchildren of XBox and PS2 will be fighting it out to integrate your home/entertainment systems and provide internet access.
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Once 1394 and HAVI (http://www.havi.org) fully catch on, the grandchildren of XBox and PS2 will be fighting it out to integrate your home/entertainment systems and provide internet access.