I don't know how you made Microsoft sound like an underdog on the OP, if anyone was the underdog it was Nintendo- just another huge corporation entering the video game business.
Microsoft wasn't scared of Sony, what was Sony trying to take away from MS? Their Vaio computers is just some brand name, they don't do OS software, MS doesn't do TVs or Media Players. MS just wanted more money and went into the game business and just needed to keep spending money to beat out PS3- Sony can't keep on spending money unlike MS.
I do think this was Mission Accomplished for Microsoft, they didn't lose anything and gained still- still 2nd in console wars, Sony is going down the toilet it seems, massive third party support, stripping PS3 exclusives, the only problem that no one predicted was the Wii but that is easy to attack also. Just throw more money for "casual stuff", avatars were made so quickly, and those games will be pouring in.
When you hear stories like Wal-Mart or Microsoft destroying competition with aggressive pricing, etc., we are witnessing it here as well.
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