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Paying for timed exclusivity has benefits in the short-term but not in the long-run. In the long-run, MS loses face with their consumer base. Many Japanese Xbox 360 owners (and I've seen some Tales and Star Ocean fanboys in the west drop $200 for an Arcade to play ToV/SO4 and a few other 360 jrpgs) who bought a 360 specifically because they thought these games were exclusive and not coming to the PS3 are screwed now. Next time they see a so-called "exclusive" 360 jrpg hit the market, they are going to think, "exclusive? pfft. I'll just wait a year for the enhanced PS3 port."