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You say most exclusive games dont make money, thats a very bold statement!

Id say very few first party games from Sony and MS fail to sell less than a million if not 2 million, so i would say they definitely are profitable.

I think Sony have so many good first party studios, because they have a very good internal network for sharing resources and technology, meaning they don't have to keep reinventing the wheel in terms of mastering the SPUS and Stereoscopic rendering etc.