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kowenicki said:

Why would Sony buy someone only if they fail? By definition you are buying a failure.

If Insomniac fail with Fuse, they will be near bankruptcy and hence very cheap for Sony to buy. Insomniac's IP, brand and remaning talent are still valuable to Sony, and since Kaz is Sony's CEO he has the means to make it happen.

Insomniac games, of any quality, appearing on the competition will be damaging to PS3's exclusive branding.