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Kissinger said:

Sony's first party games are great though so if they were third-party we wouldn't be missing much at all.

One might thing that, but can anyone name a single example of a former console maker who ended up STRONGER or on the same level when they dropped the console?

I remember in the Sega-Sony console war (Nintendo was there, but not really in the war), where you had Sony fans were all excited how Sega was dropping out, and becoming a software maker without a console.  They were all eager to get some of Sega's stuff, and look forward to their stuff in the future.  The thought was they would be a strong player in the software market.  Well, they are a marginal player at this point.  They actually had to merge with Sammy to make it.  Their titles, for the most part, are lost in the noise of the videogame industry, and it is hard to think where they really are innovative, at least not the way Sony is.

Atari is less of relevant name now, without a console.  And I think of Sony when they were third-party.  They are less relevant then, and they didn't have much in the way of quality software.  They couldn't afford to take risks like the do no.  There is something about being a console maker that affords you the ability to be innovative and take chances.  With Sony, they know the hardware and get the most out of it.  Stick their stuff on an XBox 360, and would it be the same?  I don't see it.  I doubt you would even have a LittleBigPlanet 2 either.