On the network side, we've stated that we're in a closed beta now for Home, we'll be rolling out functionality later this year, both for the Network and making Home public to others. So 2008 is going to be the year where both on the service side as well as on a Blu-Ray side, you're going to see everything that we've got.

Reality is the price wasn't that big of a deal and $499 sold a lot more than we thought, so the 80 GB got dry at retail not due to us artificially compressing it but the demand became greater than we thought. So you'll see us replenish these in the marketplace. We're still committed to our current strategy and there is much to do about nothing, I think is the way to think about it.

Third parties have started to move from the de facto 360 SDK. Of course people designed their next-gen games on it because that was the only one there. The PS3 shipped and so they said, 'let's port our 360 games to the PS3.' But now companies are recognizing that 'hey, if I start on the PS3 and then port down to the 360, my 360 game is going to look better than if I had just designed it for the 360.'

"Are we placing bets [on one particular platform]? No one can tell right now who'll 'win.' It's still too early. All three consoles have got the right materials for success. That alchemy is there across all three different platforms. I guess that's being defined a bit differently with Nintendo, but they definitely have their own consumer-oriented track, which we think is great. So I think from a third-party publisher's standpoint it's not wise to make bets right now that don't include all three consoles."