I agree that MS is targeting Sony. The problem is Nintendo is a bigger(money wise) company than all the part of Sony combined. If MS succeeds in knocking Sony out of the VG business, they are left to face the largest VG company in the World.
MS real goal was to get into every household, it has been dilluted into a war against Sony. Modern wars cost lots of money. The one with the fewest casualties isn't always the winner.
Both MS and Sony are doing exactly what Nintendo wants them to do. They are swimming in the red ocean.
Both MS and Sony need to stop concerning themselves with eachother, and focus on building a sound business. Spending $200 million in development and marketing of a game so that it will break records is not good business. Paying $50 million for downloadable content is not good business is not good business. More is not always better.
I would cite regulation, but I know you will simply ignore it.
