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I don't understand that support 360 reasoning when 360 has the best online support a gaming console ever had, the best selling peripheral, peripheral that made the most impact in gaming in ages and the best platform for multi-plat games. Microsoft does not compete with publishers that give its console edge over the competition. They're smarter than that.
360 is the foundation of the next generation that I can clearly see that is going to be pretty busy for MS. For the last 2-3 they've been investing in first party studios and technologies that the competition cannot think of with their narrow view of gaming as an entertainment.