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MS is not in the business of consoles and tablets and phones, they are in the business, first and foremost, of brand strength through perception. Let me quote the great Ballmer, and his very recent analysis on how MS is currently conducting itself "Bullshit". (they're a mundane business storage solution company, that's actually all that they are)

So, you can think, yeah but this, yeah but that. No. They were forced into this position. You can thank Sony.