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JayWood2010 said:

After eating my own words in the last thread I came to realize that Sony and Microsoft actually has developers from there own company.  Studios like 343i or SCE_Japan that has internally been built by Sony and MSFT.  Somehow i never really thought of it as being Sony/MSFT.  Now other companies like Rare Ltd and Polyphony Digital would still be here if Sony/MSFT left the console business.  They would just need to find new publishers.  But what about all the companies that was internally built?  Would they be closed down or would they have to find new publishers as well?  

Would the industry change a lot if one of them left?

Once a studio has been purchased, there really is no difference between it and a studio created internally.  When you buy another business, you're basically purchasing the assets; after that, they're yours and you can do with them what you want.  I've personally purchased another business myself.  I had the right to everything, including the name, but I instead rolled it into my own pre-existing business.  Sony or Microsoft could do the same if they wished.  Sometimes they do, as Sony has done recently, but they often keep recently acquired studios together, at least for awhile.

If you want to know what would happen, just look at THQ.  It's the same thing, basically.  They were able to sell some wholly owned studios but not others.  Those they couldn't sell were simply closed.  The IPs and games belonged to THQ, many of which they sold individually but some they were able to sell with the studio itself as a package.  If Sony were to close down WWS, for example, they could dissolve Naughty Dog, they could sell it and IPs like Uncharted separately, or they could possibly sell ND with certain IP in a package, depending on what they wanted to do and the buyer wanted.

It's just like if you were to sell your house.  You could sell it with the furniture or without, it's up to your and the buyer.  They could even let go all the employees and sell the "name" Naughty Dog and nothing else, if they wanted.