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I may be a vocal minority but I believe Microsoft's biggest competitor is Nintendo and Microsoft knows this. Sony, to a certain extent, does not have the first party software to move hardware and relies heavily on third party exclusives or third party as a whole, much like Microsoft with the exception of Halo. As a result, they compete for the same market. Nintendo however, is the dark horse with a plethora of IP's under its belt and arguably, a market to itself as it has distinguish itself differently from its competitors.