The MAIN reason is because Sony does not -just- want to sell software, nor do they -just- want to sell hardware. This is not how you develop an ecosystem and having titles tied to a specific platform is far more lucrative (albeit risky) investment. You can play Sonys games but you need to pay up for the goods. This lets them be physically represented in your household, a direct line to their store front with no middle man. They have complete control over the advertising, they get to pick who comes and who goes, and they have much MUCH more power over third and second party developers this way. If this if this was not an ideal situation to have then Microsoft wouldn't have bothered with the X1 this gen.
Plus, with this physically represented product you now have extra streams of revenue in the form of:
Peripherals (controllers, VR, Move, rock band)
Services (PS+, PsMusic, PsVue, PSN, Video on demand)
Licensing fees (the cut they take from games they don't own)
These are things Microsoft will miss out on. They know that. Thy do not want that. They have little choice at this rate. The Xbox project has continued to fail in its goals, scope and ambition.
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