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@Mr Khan: Regarding shareholders, MS would own a majority of EA which means it might be in the best interest of the shareholders to focus on improving products for X360 and not invest in development for the PS3. Also the shareholders would be able to sell their shares at probably higher then market value, part of MS trying to persuade the majority of shareholders to sell. I'm not sure how EA works though...

Either way... bad for SONY. It would be a good move for MS.