Microsoft should be afraid of Sony as being a direct threat to its business due to being a competitor in the console wars.
The article has a lot of flaws in it. PS2 and PSP references were not really needed in it. PS3 free online well if you want a good free service PSN is good for gamers. If you want a much better online service you have to pay for it and XBox Live delivers and is one of the main selling points of XBox 360 that draws people in, especially in the USA.
The X360 games library is the main advantage X360 has over PS3. The PS3 has yet to see a huge block buster exclusive game that rivals Halo 3, Gears of War 1&2 in regards to popularity and 5 million+. GT IV is the only game on PS3 that has reached the 5 million game milestone. Gran Tursimo 5 and Final Fantasy XIII still are way off from launching on PS3. PS3 has MGS 4, Uncharted, Kill zone 2 and soon God of War 3 but none of them have a chance of notching 5 million sales ltd.
The main advantage the PS3 has over X360 is the hardware reliability. Reports indicate only 2 to 3% of PS3s breakdown. However X360 hardware reliability has significantly improved over time with new models failure rates reported to be under 10% failure rates.
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