The Next Generation of Gaming - Network Connections
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All three consoles have network capabilities built in. This is something new for Sony and Nintendo, but not Microsoft. The PlayStation 2 was supposed to have it, but when it did get it, it never caught on as Sony had hoped.
This current generation is all about online interaction. It seems to be going pretty smoothly at this point. In terms of hardware, the Wii has built-in wireless, the Xbox 360 has a physical connector for a cable, and the PS3 has both wired and wireless connections.
It's great to have both wireless and wired. I have an Xbox 360 and wish it didn't have to be near my router. Sure, I could buy the wireless card, but that's another $100. Wired connections would give the best performance, but wireless isn't that bad if you can get a good signal. By the time the next generation rolls around, hopefully 802.11n will be popular and will solve most of the lag problems that people are having with current wireless connections; once that happens, a wired connection won't be needed.
Compatibility
Compatibility issues put game console makers between a rock and a hard place. You build your next generation console to play last generation's games, and the cost skyrockets. But if you don't, people scream bloody hell that their games are worthless now.
The PlayStation 3 has been at the front of this issue. The first PS3s had hardware in them just to run PS2 games. This seriously increased the price. Later they went on to drop the hardware-based compatibility and use software, which meant some games were no longer compatible. In the end, software is the way to go, but it requires a lot more work, and won't make as many games compatible as a hardware-based solution.
Home Theater
One thing that this last generation tried to do that wasn't pushed in earlier generations was create a single solution for all of the boxes that are connect to your TV right now. People probably have a cable box, gaming system, DVD player, and surround sound system. That's a lot of devices listed, but each one only does one thing.
Nintendo didn't push this so much, as their system was more basic compared to the PlayStation 3 and Xbox 360. Microsoft and Sony tried to replace as many devices as possible with their consoles. The PS3 featured Blu-Ray, and can stream movies from your PC. While it replaces a few devices, it still isn't that one device solution. Microsoft had the same abilities as the PlayStation 3, but also allowed the Xbox 360 to be used as a Media Center Extender. This made it as close as a single device solution as you'll find. The only problem was you needed a computer with a TV tuner, and you had to leave it running to use the Xbox 360 as a Media Center Extender.
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