Because there's a lot more to it than just slapping a finished game on XBLA and being done with it.  First there's the fact that you may have to get that version of the game rated in different countries in order to be able to sell it to consumers there (each requiring a fee of course).  Then you may also need to be set up in some countries to be legally allowed to sell a product as a business (say for example Canada or Australia which require a business to have a GST number) and there's also the accounting fees for paying taxes.  Then there's a fee that goes to Microsoft to check the code and each update/patch to make sure everything is OK (eg. make sure there's no security holes, etc).  There may also be legal fees to draw up any legal contracts associated with the game.  Then there may be costs for advertising and public relations for the game, etc.

What happened is probably some bean counter at Microsoft looked at all the costs involved, how much the game could be expected to sell, how much of a share they would get, etc, and for whatever reason came to the conclusion that it wouldn't be worth it with whatever kind of agreement the game's developer wanted.  The exclusivity was likely more to do with the number of additional copies it could sell than it would be to stick up a middle finger at Sony.  It's not like having this game exclusive would make it a high profile system seller, the vast majority of future Xbox 360 owners probably won't even be aware of XBLA before purchasing a system.

I can perfectly understand this and can't see the news value. They want a multiplatform game being published by a first party publisher. It's something that happens on very rare occasions and even then, the publishing contract is usually made prior the dev decides to go multiplatform with the game.

Apparently so deceptive it deceived the poster. LOL Looks like he didn't take the time to read before posting it or he'd realise it was a shit article.

Thanks for explaining that.  Although all of that doesn't seem like it would amount to an insurmountable amount of cash, especially considering the low-level marketing associated with online games.  Is there another reason (besides money) hindering developers paying for this themselves?

i think microsoft dont want to publish it on live then devs getting on another system.

if game is published on live by 3rd party and then published on psn on wii they dont have prob with that

If they really wanted Microsoft to publish the title then I can definatly see where the problem lies. Judging from the mans statements that is probubly the case. However then again that may not be the case because he says it is headed to PSN and WiiWare right? Now I know Nintendo nor Sony would ever publish a non-exclusive game so that begs the question who's publishing the title.

Maybe they are self publishing and Microsoft didn't see the value in having a major multiplatform XBLA title. I mean the titles already on MAc, Linux and PC. The titles coming to PSN and WiiWare what benefit remains for it coming to XBLA?

Since the man also mentions a six month corrispondance with Microsoft it sounds like Microsoft did not take the decision lightly. So they probubly thought it through and for reasons I probubly can't even understand chose not to. But that choice does not seem to have been taken lightly!

I've ehard great things about this game, but Microsoft made the right choice. Its on all the computer platforms, even Linux. Why the hell would they publish it?

Indeed, MS not supporting/publishing the game doesn't mean they don't want it on their platform. They would allow it on the XBLA provided that another Publisher takes care of it.

so whats the problem with them self publishing on xbl? why are they after a big publisher for the product.

Of course if Microsoft is the publisher, they won't allow it on other consoles. Who would? They can get another publisher, and get it on XBLA.