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ZenfoldorVGI said:

You said first party studios, not exclusives. MGS4 is not from a first party studio neither is Gears of War. MS can buy and order exclusives without owning the studios, and that is one major thing they did this generation to help them succeed.

In some respects it doesnt matter how you do it as long as you have a raft/range of exclusives that get people to buy your console and enjoy it.

Guess the only downside with that is that it could potentially be alot more expensive to do (not that is necesarily a problem if you have lots of cash), also you dont end up owning the Tech (in some cases they might if they pay for it as well).

I guess what i am trying to say is that relying on others is ok to reduce the costs of owning a studio (building, rent, staff, hassles), but it could also be a pain in terms of Tech improvements, owning tech, making the tech better. Sony have improved many of their own internal studio games by getting thier internal studios to talk to each other and spread the tech/code. I think there will be big improvements for games such as Infamous 2 because of work they have done on Uncharted 2 etc (and many others).

I wonder if that will have any impact on the next generation or not... I really dont know.