"I'm not exactly sure what the strategy is to defend against this, either." Beat Microsoft at their own game. Initially, people moved to MS-DOS because it was

"I'm not exactly sure what the strategy is to defend against this, either." Beat Microsoft at their own game. Initially, people moved to MS-DOS because it was the cheaper computing environment. The first place company in the console wars currently is Nintendo Wii, and lo and behold it is cheaper than the rest. Pretty damn good + cheap = winner Nintendo is 1/2 the powerhouse with a 1/3 of the AAA titles, yet dwarfs MS and Sony in console sales (and, with DS portable, completely blows them out of the water). Another example: Compare how utterly lost iPad competitors are in the tablet space. One had to completely exit the market and slash prices to below cost to even make a dent. Yet, there is one tablet quietly garnering sales in the millions and is single-handedly keeping a billion dollar company afloat: The Barnes and Noble Nook Color. They're selling these Android tablets like hotcakes. It's well crafted and sturdy, and at a price point ($250) that makes it a compelling purchase. It's making B&N a fortune.