Lol. MS didn't defeat Sony. Nintendo and Sony defeated Sony. MS have extended the gaming niche they started with Xbox, and have done so well. But if they had defeated Sony they would be sitting with the consoles sold Wii has (as in my book defeating is replacing the other company - which means becoming this gens PS2).
Sony decided to put BR in PS3, not MS, Sony decided to make a big jump in specs (perhaps with an eye on MS) not MS. All of these put far bigger dents in the PS3 than MS strategy.
Sony made big mistakes in judging the readiness for the market for a new format, misjudged the price point adoption and mis-judged the impact of high games costs on many developers.
MS really went for Sony, true, and mainly using a big wallet, but I really doubt the damage inflicted was more than a fraction of what Sony inflicted on itself.
Nintendo meanwhile played a blinder with Wii on specs, cost and innovation and swept easily into first place, becoming (for the moment anyway) this generations PS2, leaving MS fighting narrow margins to claw marketshare and keep PS3 from getting past them while failing in any way to dent Wii's progress.
And really, the 'denial of service' approach is as likely to lose them potential customers in Japan as it is to gain them, as the numbers clearly show a majority of local gamers aren't allowing MS to 'push' them to get a 360 to get their jRGPS.
Try to be reasonable... its easier than you think...
