I was just looking at a thread and noticed a number of posts of people praising microsoft for delivering the goods and chastising sony for sitting on their collective asses fot the first three years. Speaking specifically about how microsoft went out and got DMC4, FF and a number of other games while sony was being arrogant.

My question is wasn't the PS3 getting these games already? What exactly was Sony supposed to be doing, getting new IP's . As far as I can tell they did that and still got most of the multiplatform games. Personally the only contribution I praise Micosoft for was Gears of War ( Not really my cup of tea but I can appreciate it) and Mass Effetc ( Great game reminds alot of KOTOR and I loved that)

This has nothing to do with the terrible pricing but specifically the games that we are enjoying. It seems that people are praising MS for games that they were getting already. Not unlike Sony and the PS1. They just got alot of games you would still get anyway.

Well, I guess it´s, since MS saw the damage Sony caused when they priced the system at $600, one of their strategies was to get as many similar high profile titles as possible so people would see 2 very similar libraries and go with the cheaper system, namely the 360.

I reckon that it was a pleasant surprise for 360-only owners that they're getting to play a lot of games which they wouldn't otherwise have gotten to play unless they also bought a PS3.

I think Microsoft has done a fair bit more than you're giving them credit for in terms of new IPs and new installments of old ones. They helped get Mistwalker up and running. If Microsoft weren't making teh moneyhatz for Square-Enix, I rather doubt that we non-Japanese would be getting to play a new Front Mission. And even though it was a bomb in the end, a lot of people no longer have to hold their breath wondering what Too Human will finally turn out to be.

This+Released their console one year earlier. We dont need to get in the discussion how they sacrificied the quality of their product to make it cheaper  and to release it earlier to overthrow their competition.

"And even though it was a bomb in the end, a lot of people no longer have to hold their breath wondering what Too Human will finally turn out to be."

Lol :P

Answering your overall question...

Microsoft pulled out the money.

What did mistwalker make?

Microsoft noticed last gen that Sony was surviving off of third party titles. If they had first party titles, they were barely putting out anything for it as far as commercials. Microsoft saw their weak spot and acquired third parties for themselves, since the economy was bad and the 360 had a larger installed base (Especially in terms of activity). Devs were willing to go multiplatform so they could make more profit on their products and because the cost of Blu Ray was so high, Microsoft would help with actual profit because 360 games are cheaper to make and in the end result in more profit for the devs by being with both. Sony then was forced by Microsofts actions to get their devs to focus majorly on first parties this gen. 

Sony was too cocky and what they are getting this gen has been coming for a long time. Sony used to be the big corporation that could push around Nintendo and Sony and outbit them for games. Microsoft is here and every ten seconds you hear about what Sony refuses to do on a financial level.

so then could we possibly see sony do a nintendo and build up strong first party titles for next gen. And if so would it take them another whole gen to get it right

Lost Oddesey.

The reason why this is such a big deal is because these games probably wouldn't have gone multiplatform if the PS3 was way ahead of sales on the 360 and definately wouldn't have gone multi if it was ahead of sales of the Wii. Sony screwed up their launch and kind of deviated from their "10 year plan" for awhile in order to fix the things they screwed up ie (No rumble, high launch price, lack of games, online was miniscule compared to XBL, delayed games, canceled big games, etc. They have fixed these problems substationally, it took them awhile though. And while this was happening the Xbox was going strong. Games being so expensive for the HD consoles it only makes sense to go multi, especially if a company pays you millions of dollars to do so.

I think everyone is just amazed that the Xbox brand could give the mighty PlayStation brand such a run for their money. Having said that, I think this is awesome for us as gamers and consumers. This has to be the fiercest console competition I have seen in a while and this means price drops, more exclusibes, more content, bigger and better online, etc. Ultimately we as gamers win just so we will spend 50 bucks on 'x' console instead of 'y' console.

=)