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I think most people are just waiting for the game engines...well, for now, yes, but looking at the progress of Google Chrome OS, HTML 5, and Google's O3D API, it could be possible that browser-based games will keep getting more advanced.. another problem is the download size/network. Surely we are still pretty far away from browser-based game console, but it looks like its moving in that direction.. Would be very cool not having to deal with CDs, installs, game consoles, etc.. just login, pick your game and enjoy.
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