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@Shadowblind

I think Microsoft has the sound financial strategy. To follow in the footsteps of Sony is an expensive proposition. One that Sony might be regretting right now. They have spent hundreds of millions on purchasing developers, and if that cash had instead been banked it could have done worlds of good for their console this generation. When they needed to secure third party exclusives, or at least force Microsoft into prohibitively expensive bidding wars.

Microsoft isn't cannibalizing small developers to fill a roster. Instead of breaking the bank buying developers they have opted to go the comparatively cheap route of buying exclusives instead. When buying a high end developer can run you the budget for purchasing twenty high end exclusives. Then it is simple math. A developer can deliver a game a year. For that amount of money you can buy four exclusives a year for five years. That is a four fold increase.

Obviously the strategy works, or at least has worked for Microsoft. Their purchases have the benefit of almost always being for highly touted games or content. They almost always never eat a dud in the bargain either. Plus I am sure the third party developers are loving them for this.

Not being first party isn't necessarily bad for them. Only if Sony can manage to steal them away, or get a hold on them while they are still worth while. Which frankly doesn't look all that likely as long as Sony is in its current predicament with its current user base.