Why would somebody dislike 'moneyhatting'? It can only be because they think that doing so provides an unfair advantage to the 'moneyhatter'. Of course it doesn't. This is essentially the same argument that people use when they say Wal-Mart can afford to sell goods at a lower cost than what they pay, in some locales, in order to drive their competitors out of the market. The idea is that because Wal-Mart has so much money, they can absorb those additional costs. This is a fallacy; as soon as their competitor is driven out of the market, in order for Wal-Mart to make a profit they must of course raise their prices to a profitable level. Then their competitor can just enter the market again. If Wal-Mart persists in such activities Wal-Mart will no longer be able to afford to charge such low prices. Remember that as a corporation their sole motive is for profit.
The idea is translated into this situation by equating Wal-Mart with one of the 'big three' and saying that they are subsidizing entry into their respect console's market by giving a firm money to develop exclusive games for their console. One must take into account that the game-developers would have developed games regardless, but now they are being compensated for their necessary loss in developing an exclusive game. For if developing an exclusive game for this specific console would have maximized their profit they would have done it anyways. Therefore the moneyhatting firm is absorbing a loss in the moneyhatting activity. The competing firm, which did not moneyhat, absorbs no such loss. Therefore, while they may lose market share in the short term, they will have earned greater profits than the one who captured the market share.
Now the firm who moneyhats would only do so if they expected greater profits to arise from the activity. And so when the other firm loses market share, it can be expected that the moneyhatting activity would cease, because they are making below-market-average profit levels in doing so, and a firm who consistently makes profits lower than the market average will obviously not succeed. But when the moneyhatting ceases, firms will again rationally choose to develop for whichever company will reap them the greatest profits, and so market shares will tend back toward the level they would naturally have taken within the moneyhatting expenditure.
IN CONCLUSION, in order to maintain an unnaturally large markets-hare through the moneyhatting activity, the company must continue to do so indefinitely, but in doing so, they will necessarily reap lesser profits than their competition, which will force the firm to cease their moneyhatting activities, causing the market to shift again away from their product and toward the competition, but the firm which had previously engaged in this activity will have reaped lesser profits than its competition, meaning that the moneyhatting activity only served to harm the company which engaged in it, rather than help it. That being said, there is nothing anti-competitive about moneyhatting, which is why no U.S. court would ever rule moneyhatting to be against anti-trust law (the body of law which serves to promote competition and outlaw all anticompetitive behavior).
So this thread is a load of garbage.
(source: my economics degree)