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According to capcom gamesharing hasn't really reduced PSN sales for their game. They found this out because there is a DRM that restricts gamesharing.

So that definitely does not hurt in anyway when it comes to full games.

And the guy has only 2 problems with PSN, one is that it doesn't sell that many games and two is that it has a high entry price point?

Joe Danger was made by a group of 4 people btw. Oh and it was successful as well, so its clear that good games do sell well.