I kind of agree. Given the PS1 and PS2 lived off of third party content, I thought it was a ridiculous move by Sony to refuse to pay for it once competition came in (given how much it has helped them in the past).
If they bought exclusive content whilst backing their 1st/2nd party developers, they'd have a much stronger lineup compared with the 360 (I won't comment about Wii lineup here), but right now they are a few games above having a better library then the 360 and a few games short of (depending on who you ask).
Now if they'd done that this generation, they would established plenty of franchises and 1st/2nd party devs for the PS4, which meant that by that stage they could have done a Nintendo and not cared about 3rd party exclusivity (Nintendo do care about 3rd party content, just not as much as the other 2. Probably because they don't need to rely on it).
Instead, they went with Resistance, Heavenly Sword, Uncharted, Motorstorm, Lair, Folklore and Eye of Judgement. They've had ratchet and clank, Killzone 2, GT5 prologue and will have God of war 3 make an appearance from last generation.
But taking out Resistance and Uncharted, their new IP's this generation haven't been stellar (though 2.5 or 3 out of 6 isn't bad. 2.5 or 3 depending on how you feel about HS and Motorstorm).
Had they'd spent money on buying exclusivity, we could have added DMC4, GTA4, FF13 and 13 VS (which we can still add) to that list, it would have looked much more impressive (Though let's not forget of course MGS4).
If they'd had this two pronged attack of 1st/2nd party titles and 3rd party exclusives, they would have looked amazing going into the PS4 (1st party dev's would have looked much better, rather than being something they now over rely on).
I mean, Sony killed the PS3 for the sake of their long term future (blu-ray), why would they make such a silly move as to not secure a competitive edge games wise with a slow move towards internally developed exclusive games. If they'd done that, they would have maintained a competitive advantage over the 360 by having a better exclusive lineup, and could have built a Nintendo-like (doubt they'll ever match Nintendo now) in-house development team.







