Looks like Microsoft understands that Nintendo has hit the sweet spot with the Wii - check out their stance at E3:

As Microsoft executives played down the impact of an extensive repair program for defective Xbox 360 game machines, they announced several efforts to broaden the appeal of their machine to families.

As I posted last week, it sounds to me like they're on top of the defect problem. With this, it sounds like they know where they have to go to broaden their appeal: which means that the next generation XBox will probably be a very interesting piece of equipment.

Technorati Tags: xbox, wii, games