A lot of people seemed worried about Microsoft's future, given less people are buying computers running the Windows OS and their Microsoft Office cash cow could be threatened by free alternatives going forward.
But I have to say in the week I've owned an xbox 360, I can't believe how often I've used it (often for watching movies/shows on Netflix streaming) and how slick and user-friendly the platform is. The new Kinect is pretty amazing, going way past the cool intuitive approach of the Nintendo Wii with the simple controller by getting rid of the controller entirely. I threw the dance party kinect game up yesterday when some friends came over and everyone from age 5 to 50 enjoyed getting down to 70s hits.
Put simply, the xbox 360 is an incredible home entertainment delivery device, one that has already got me to spend $50 on xbox gold and $50 on xbox live points, about $250 on games, and this is in addition to the $300 unit I got as a gift. It's a pleasure to use, super handy for streaming movies, and the games are super fun.
Microsoft has a killer living room appliance and bridge to the internet that easily hooks up to your TV. If their business models around gaming are at all set up correctly, they should have no problem remaining a dominant force in the technology world.