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This would be a terrible blow to sony if it happened. Activision Blizzard are arguably the biggest 3rd party publisher in the world. People may think it wouldn't be damaging, but when the average consumer can't get their call of duty and guitar heroes every year they'll get a bit pissed.

I don't however think they will drop support, as has been said I think its more a scare tactic to make sure sony drops the price on the ps3.