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Dodece said:
Yet another large step in exclusive acquisition. Microsoft in one deft move has increased the financial incentive of developers to focus their efforts on developing games for their platforms. This should definitely decrease the development costs. Which not only makes developing for the 360 more appealing, but also makes developing for the PS3 less appealing.

Microsoft really is working an assault on multiple fronts it seems. First with the exclusive game acquisitions. Then the new price fronts announced this year. Now they are attacking the development costs. I am curious as to how Sony is going to respond to this. I would wager that Sony is going to have to work down its licensing fees.

Definitely a good find this development alone will probably net Microsoft a dozen more exclusive titles every year. That is not to say high end titles that are looking to sell three or four million, but titles looking to sell somewhere around five hundred thousand units most definitely. This should make smaller developers even more prone then they are to focus on Microsoft.

 

Umm... Sony did the same ages ago... read ssj's post. 

Quotes from the link: 

"Microsoft has been licensing Havok products since 2001" 

"Havok works in partnership with the world's best known developers, including Sony, Nintendo, Microsoft, EA, Ubisoft and Pandemic Studios."