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Not a great article, some things I agree with and some I don't.

1st - The PS2 exclusives may not have been announced on the PS3, but consumers attributed these franchises with Sony. Some owners may have bought a PS3 believing it was on the only place to play these games. Once the next generation starts gamers won't immediately go to Sony for their favorite franchises. This is a very big loss for Sony, but it may not be realized until the next generation.

2nd - PS3 may or may not pass the 360 this generation. However, I don't think sales of the 360 are going to disappear in Q1 2009 once the 360 surpasses the XBox. MS did succeed in expanding its market at the expense of Sony. However, I doubt Sony expected to dominiate like they did the previous generation.

3rd - Agreed. PS3 gamers have not lost anything by having these games on the 360. It gives gamers a choice of systems (although I guess this is a minus for Sony).

4th - Agreed (although I think Nintendo has better studios). Sony does have great 1st and 2nd party studios that make some great games. This is where they will need to differentiate themselves from MS and Nintendo. 1st party software kept Nintendo alive through the previous generation and is why they are on top this generation.

Sony isn't leaving the console market anytime soon, but to say they have not lost anything is naive.