Obvious Diversion

If the Xbox 360 aka the next Xbox ships this fall with reasonable DVR capabilities, it will almost instantly become the largest installed DVR hardware in the country leaving Tivo and various competitors far far behind. Microsoft may have one hell of a trojan horse coming up with their next videogame console and a lot of players should be wary. This could happen as well for either Sony or Nintendo and their respective systems, but Microsoft is the most likely to take advantage of the situation. The question is how much are they willing to lose per unit to place this bet? Shipping a DVR with every game console will certainly create a huge installed base, but getting users to take advantage of these additional features will take fantastic product design. If you fail on the user experience, all that costly additional hardware will be for naught.

Update:
Looks like Xbox 360 will not have full dvr functionality.