We would see Software only company Nintendo release games on the The new Sega Ultracast, which would be a HD-DVD console that came with a motion sensing remote, 2 standard controllers, a mouse & keyboard, and a light gun.

Sonic Galaxy would be the holiday smash hit, and people would be drooling over the uncoming Phantasy Star VI. Also, Sonic Smash Brawl would be fun for the whole family as you can choose from such Characters as Sonic, Tails, Knuckles, Dr. Robotnik, Toejam, Earl, Rastan, Alex Kidd, Rash, Zitz, Pimple, Space Harrier, Gilius Thunderhead, Tyris Flare, Ax Battler, Wonderboy, and more!

Sega's competitors would be the 3D0 mk4, and the Neo Geo 360, who are also strong systems.

On the PC side of things, Manic Mansion Online would be the number one MMO with over 10 million monthly subscribers. Duke Nuke'em Forever 3 will have just been released, setting a new bar for all FPS games to come. And it all runs beautifully on the newly released Linix 12 operating system with OpenGl 10. But, as always, you have the hardcore geeks claiming that the open licenced "Windows" is better, and that DirectX is a better graphics system.

Also the war between Atari and Commodore is still going strong. Commodore is still the main computer company and its home systems and servers are found the world over. Atari is more of niche computer, whose computers are trendy and sytylish, though their recently released MP3 players known as Cheetahs are selling like crazy, as is their sylish new Cheetah Phone.

An ever increasing trend finds gamers wanting better playability and fun in games and don't give a rat's ass about graphics, so EA rebudgets their games accordingly. A 2 Million dollar game project now devotes 1.5 million to the game's engine, while the other .5 million is left for artists, sound, marketing, and endorsements.

As a further result, Nvidia and ATI/AMD decide to release new graphics cards every three years, instead of the current 3-6 month cycle.

In other news:

The internet now has wait times to log in and digital tollgates have been installed to access it, as the tubes are getting too full.

Rockstar games is filing for Chapter 11 bankruptcy after their string of games that all flopped, including GTA3, Munhunt, Bully, and Max Payne. The only successful game they have released in the last 10 years was State Of Emergancy. Rockstar's lawyer, Jack Thompson, says that he will continue to help them pro-bono as he feels that their games were artistic masterpieces, but they just didn't get the attention they deserved.