Microsoft's Xbox Faces Tougher Competition

Xbox has "been the first to successfully combine television with interactive," says Bing Gordon, a longtime videogame executive who now is a partner at venture-capital firm Kleiner Perkins Caufield Byers. Mr. Gordon called Microsoft's Xbox Live, the 10-year-old Microsoft service linking Xbox to the Web, "one of the great software inventions of the generation.

There's a lot riding for Microsoft/Xbox and this year holiday timeframe will prove decisive. I don't see any change though coming in the leadership and Xbox will continue to lead here for foreseeable future.