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Soundwave said:

I kinda wish MS never had entered the game business. They don't need it financially at all, they haven't accomplished what they set out to do in the first place (Sony is right back to kicking their butts), and they've cannibalized the business so that Nintendo has been forced to be the weird outsider.

If anything the game business and being focused on the PS2 was always a paper threat to MS. They ignored the actual threat that was right under their noses in Apple and Google who actually beat MS to the punch in creating the lead OS for the new century (iOS and Android). Sony was of no threat in the long term, in fact Sony of today is a drunk shadow of the company they used to be in the 90s, bleeding money all over the place, MS' assertion that Sony was a threat to them was laughably wrong. They should have been paying attention to Apple and Google not being distracted by things like game consoles. 

yeah apparently MS thought that the operating systems on consoles would matter more than PC operating systems and so they saw the Playstation's dominance as a threat to their OS monopoly (or close to it).  This was obviously a strange thing when looking back but hey with the explosive growth Sony had given gaming I can't really blame them for thinking consoles in the future would overtake PCs with their increased functionality.  That being said Sony was a hardware company and MS is a primarily software company so they probably shouldn't have been the primary threat lol




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