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I will have to give Microsoft a pass on this scenario.

PlayStation is getting a ton of RPGs this year and XBox needed something to compete in this genre.

Instead of providing XBox with a definitive RPG, LionHead created an abomination of online multiplayer arena.

Honestly, I don't know if the game was going to be good or bad at the end, but its clearly NOT what Microsoft asked for.

In the other hand, Evolution Studios gave Sony everything they asked and more. Yes, the game was not ready at launch, but Evolution was a relatively small Studio, that could have used this rough experience to build something even better in the future.

To wrap-up, Sony lost more than Microsoft did in this situation.