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binary solo said:

Not so much because of any harm that the ad might do (which is no harm at all really in this case)

It did a significant amount of damage to marketing contracts.  Publishers make a lot of money from these contracts.  If loopholes arise, the value diminishes, and the developer makes less money from such deals in the future.

This is a huge deal to any publisher.  They want to protect their imediate and future income.  If Microsoft is successful without an recoil and Sony follows, all publishers have a lot of $$$ to lose in the future.  I bet you none of them want that.