Sony is no longer playing catch up. And Microsoft can't afford to keep releasing new consoles every four years (different between X-Box and the 360). And releasing a console in let's say 2009, by the time Sony and Nintendo release their new consoles they will be far superior to the X-Box 720, for no other reason than technology and logic dictating they won't release a console with the same specs that is already out. Plus Sony also cannot afford to release a new console only 3- 4 years after the PS3. They are still making money on the PS2 and PSP (which for some reason are now selling like hot cakes), and with Blu Ray seemingly given the nod as the 'winner' of the format war Sony have a gold mine in that area. They have a huge gaming line up for 2008 and 2009 and announcing a new console is just pointless at this stage.