What Pachter is saying is, "Can't win, don't try." I agree with him in some sense, but at the same time, Microsoft is not going to take first place (world wide) with that attitude.
I also have to say that while Microsoft deserves some credit for putting a ton of money and effort into getting exclusive Japanese games and RPGs, at the end of the day it takes more than buying exclusives to really turn around your market position. Many people believed Nintendo's best strategy for this generation and last generation would be to buy up exclusive deals for games like GTA and Final Fantasy...but instead Nintendo came up with a strategy that has had a much larger impact, a strategy that turns the tables around completely and will force many third parties to support Nintendo for free.
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