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Augen said:
Competition is good in the sense that a pure monopoly can lead to business practices that hurt consumers.

If there was no competition we likely would see who ever had the monopoly charging more for systems, controllers, games, online services. While I can agree a market leader is good and parity can be an issue, no competition is definitely bad. All I have to do is view cable companies in the US and how poorly run companies can get away with when there is no pressure on them.

I would point back to PS2 gen, it dominated (pretty much like major cable companies) and we didn' see any of the issues you pointed out.  The other system during 6th gen could serve as the smaller cable companys that can't really compete but are still available (going by your analogy).