- The Xbox 360 will refresh both SKUs with an HDMI port and the "premium" version will also get a larger hard-drive. The "core" pack instead will drop in price by $50 and replace the wired controller with the wireless version.

- Sony will not drop the PS3 prices going into the holidays, instead bundling Spider-Man 3 with both models and adding an HDMI cable to the 60GB version.

- The PSP will see a $20 price drop and come bundled with a 1GB memory card and a coupon for a free PS1 game download. Hard drive rumors will persist but yield nothing.

- Microsoft will introduce the ability to use any attached USB hard drive for music and video storage with the Xbox 360. It will require formatting the drive specifically for the '360 and cost 4000 points.

- The Wii will show strong hardware sales but weak software sales apart from its Virtual Console selection and anything touched by Nintendo. Ports will be the order of the day throughout 2007 with original titles pushed into 2008.

- Samba de Amigo for the Wii will be announced.

- Windows Vista will not become the dominant operating system in 2007 as piracy and demand for support from corporate customers keeps XP going.

- The Games for Windows initiative will not affect sales with EA and MMO publishers notably refusing to play along.

- A surprisingly complete Starcraft 2 will be announced in the Fall with a late 2008 release date.

- Fervor for Guitar Hero will cool as the song list for the third installment proves underwhelming. Rumors of Sitar Hero will prove to be false.

Duke Nukem Forever will be released

- This is the year that PC exclusivity starts to die off and the impetus to buy a game on a console rather than the PC will reach its highest point. We may only start to see a few PC-only games coming from the big publishers (Dragon Age, Silent Hunter IV, Supreme Commander) as pressure continues to build to release titles on as many platforms as possible.

Ding!

- Ghost Recon: Advanced Warfighter 2 will be a disappointment if it brings back the helicoptor gunner stages.

Must have, since I never played it and don't know many people who did.

I am pulling these out of my tin foiled cover ass.(don't wanna be probed by aliens you know)

Auto Assault will go the way of Guild wars and be free to play.
Master Chief will remove his helmet and reveal he is a cyborg, but the game will end with his possible death.

Microsoft will add a new feature for adults and start offering porn movies.
At the end of 2007 one of the Big 3 will call it quits and pull a sega and only make games.
Disapointingly still no Halo movie, but a cgi cartoon series will apear
Namco will make a MMO fighting game.
Eberron will be an expansion for Neverwinter Nights 2
Sadly this will be possible due to DDO floundering
Sega having felt the pinch from EA sportswise, and Sonic not doing well will once again develop a console.

Ms will release a handheld gaming system, but it will only play xbla games.
Also plays mp3s.
Doesn't cost much either, practically giving them away.

- PS3 price drops, at least one of which is assured, do not significantly help sales. PS3s will be readily available in stores for as long as Sony makes them. New (as in, non-Resistance or other previously-announced) PS3 exclusives will be fewer than those for the 360 or Wii, and will come only from Japanese companies. The majority of these will be timed exclusives of less than a year.

- The Wii becomes the most installed console whenever Nintendo's units shipped overtakes Microsoft's units sold, but the 360 maintains a strong position in the market as the console of choice for multiplayer gaming and the hardcore crowd. There will be a price drop in the premium package by the end of the year.

- Vista has a very low adoption rate; most "sales" are OEM. Few games offer any incentive to play on Vista rather than XP. If Halo 2 PC ships this year, its sales will be actively and substantially hindered by the Vista requirement (this is probably true for any year).

- PC gaming continues to decline. Despite the omnipresence of the PC, few outside of the hardcore FPS/RTS crowds play anything other than Solitaire and web-based games.

- IPTV will not be worth experiencing in 2007 due to implementation and television programming (shows, sporting events) issues. Current television providers will fight tooth-and-nail to lock up exclusives to maintain their market share, with an emphasis on sporting events.

- At the end of 2007, the DS will be the most-installed video game system on the planet (of the current gen; excludes the GBA). Between the Wii and the DS, our perceptions of what gaming should look like will continue to be turned on their heads, and hardcore gaming will become ever more niche. More than 3x intstalled DSes compared to PSP, more Wiis than 360s or PS3s, possibly combined. Low price point and simplicity of interface win the day.

- Online voice chat for the Wii! Still, Wii multiplayer functionality will not be as streamlined as XBL. The PS3 will attempt to copy XBL (while posturing their service as somehow original), but regardless of how well they clone it, it will be irrelevant in a world of few installed PS3s and few multiplayer exclusives. Multiplatform multiplayer games will sell best on the 360, already the online console of choice in 2006.

- Guitar Hero for the Wii, featuring wireless controllers!