Well... The ball is now in Microsoft's court. I expect that the it's best If they announce the Xbox 720 within a month or so. The longer they yeild the spotlight to Sony, the more detrimental it could be.
What "spotlight"? Sony announced
a console that no one's actually seen in action yet. People are talking about it. So what? None of it matters until the consoles actually hit the market and have some games out. This whole notion of judging a console before anyone's even used it is just nuts.