Michael Pachter has predicted that Microsoft’s next gen console will outsell the recently announced PlayStation 4.
He commented during an SXSW conference and revealed what their core strengths are. He said that TV Tuner and Skype are killer apps for the console. He is right in a way that it will connect the next-gen Xbox to a variety of devices and also expose the device to a massive userbase of Skype.
Microsoft can make money via subsidies from MSOs or ISPs.
Sony will do well next gen too as Gaikai and content are on their side. The Xbox 720 console will be announced on April this year and we will get a better idea of its features then.