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I don't think giving InFamous 1 away hurts sales.

Who are the people that bought InFamous 2? These are people who already played InFamous 1.

Who are the people downloading Infamous 1 on PSN? Those are the people who never played InFamous before. These ppl are not going to buy InFamous 2 anyways.

So in conclusion, free Infamous actually benefits sales of Infamous 2 in the long run (give time for ppl to finish the first game)