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@kingofwale: nothing can bankrupt Microsoft. They make more money every year than all of those purchases would cost.

And I don't think it'll work against the Wii. The Wii mainly sells on it's first-party games. Maybe your plan would work in the US, or it would at least slow down Nintendo, but in Europe and Japan it wouldn't work. I would foresee doom for SE if they were only able to produce on Xbox, and Europe might love football games, but that wuldn't stop Nintendo.