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Squilliam said:
"Microsoft doesn't pose a real threat"

To be honest if you consider the number of first party studios to pay for, keeping the PS3 at a low marketshare and severely diminishing their console sales through competition, Microsoft could cause SCE to self destruct.

See if most HD publishers are losing money then Sony first party studios must be losing money hand over fist considering they can only sell to 40% of the HD console userbase. That $6 saved from console owner royalties is a pittance next to being able to address 100% of the HD console userbase.

 

First and second party titles always bring in more money than third party titles. This is why Nintendo was fine for the last two generations, and it's why the Gamecube was the only console to turn a consistent profit all throughout last generation. It's also the reason why MS has lost so much money. Aside from Halo, their first and second party sales aren't anything to write home about.

Sony's first party may not be up to par with Nintendo's, but it's a hell of a lot stronger than what MS has to offer. If 360 exclusive third-party titles started to go multi-platform and/or change hands, then MS would be in a lot more trouble than Sony is right now.



 

Consoles owned: Saturn, Dreamcast, PS1, PS2, PSP, DS, PS3