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Insidb said:

First bolded point: This is a way for them to draw more users in, not them giving up on Xbox. It's more of a, "Hey, get our product, because it works with everything," kind of thing.

Second bolded point: They got destroyed with the Xbox. The dominated with the Xbox 360 (until the last few years, but still an excellent product). They're not admiting defeat. They did things wrong with this console. They'll (hopefully) learn from it.

Third bolded point: Too many people are too invested in Steam. Microsoft should have done this from the start. They didn't, and at this point it would be financial suicide (maybe exagerating, but my point is "no").

Fourth bolded point: As long as there are people who want to pirate there will be pirates.

Fifth bolded point: We should never go this route. Ever. Too many issues with lag/latency, that goes back to the requiring an always on internet connection that people were in an uproar over the Xbox One. This simply will not happen.

I think it's disingenuous to say that the Xbox "destroyed" the PS at any point. The X360 launched a year earlier than the PS3, and the PS3 manages to outsell it. 

I never said they "destroyed" Playstation. I said they dominated the market until the last few years. It doesn't matter if it's because PS3 launched late. The fact was there were more Xbox 360 owners than PS3 owners until the last few years of the last gen consoles.