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Squilliam said:
We still haven't hit the phase when we have a bunch of people saying that Sony would be better off as a third party publisher rather than as a console manufacturer. I think we're somewhere between the frustration phase and the 'you should be a third party' stage. Nintendo had it last generation, so a few more slow sales months should be good enough to get the bloggers hearts pumping for the next phase.

You have slipped into Sega territory.  I remember that being said about Sega, and what had happened as a result:

1. A third-party software maker doesn't nearly get the level of attention that a console maker makes in the business.  Their titles are more apt to get lost in the shuffle, particularly if they were a former console maker.

2. There ends up being a hidden lust for exclusives console makers make, that owners of other consoles want on their own.  They think going third-party would allow them to get great titles on their system that were on the other console.  Nevermind that games were specifically coded for a given platform and would take a hit.  Multiple Dreamcast games, for example, were a disaster when they jumped onto the PS2.  One notable one was Crazy Taxi.