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The 360 would've been royally fucked if this had happen. It would've released in Spring of '06 instead of Nov. of '05, and would've been more expensive. This would've taken away the consoles 1 year/9 mil. install base advantage, and many of it's defacto exclusives (Lost Planet, Dead Rising) would have been multiplat ps3/360.

Every reason the 360 is so far ahead of the ps3 right now - 1 year headstart, larger game library, cheaper price, time to get XBL sorted out - would've been removed. The 360 would've had a smaller install base when the ps3 launched, and the ps3 would probably have been outselling the 360 by a lot from launch on.

Of course, the format war would've been much more even as a result, but MS wasn't willing to destroy it's chances in the console war for somebody else's format.