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It is a business model that is working. When the 360 first came out their were exclusive titles around every corner. What they did was consolidate and work on the titles that give them money. This also works because most 3rd party games sell better on the Xbox 360.

People need to realize that the industry has changed since 2005. 7 years ago having the most exclusives and pandering to the "hardcore gamers" was a must. Now way more casuals play video games. More casuals than hardcore gamers actually. That is why when people keep fist pumping to all the Sony exclusives I laugh. Most of them don't sell well and it is a business model that died a long time ago.

The gaming industry is a business first and in any business the number 1 goal is to make money. I think Microsoft has done an exceptional job at making money.