3rd Parties saved who now? Nintendo and Sony must be laughing their asses off at this reaction.
Ill wait to see confirmation, but its wonderful how EA and Ubisoft will come out smelling innocent, but MS is the bad guy for doing exactly what they demanded all along.
I think the decision, if true, is not based on what MS wants but what 3rd-partys said when MS was talking to them. No (non-Nintendo) console can survive without support of 3rd-party and I believe they demanded something like this.
We'll see in which way Sony and MS offer different systems and especially how this will effect sales.