The funny part is that despite M$ millions in profits and sony's billions in losses, sony has kept their gaming division intact as of now. Word goes around that they even bought another studio (from a kotaku poster, I never verified this). On the other hand, M$ who has made profits in this division is firing the division's employees.
So it boils down to this: either sony values their gaming division more than M$ or M$ thinks it's better to just outsource everything.
What this kind of strategies hold for the future is this: if something drastic happened and sony's next console totally tanked, they could easily pull of a sega and just make software which holds less risk but if the same happened to M$, that's pretty much it for the gaming industry at least on the console front.
"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)
"WAR is a racket. It always has been.
It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler
