Competition can be negative to consumers in subtle an indirect ways:
To much choice can be a bad thing, decreasing overall quality (NA Gaming Crash)
Product Differentiation can weaken, resulting in confusion.
Consumer Biases can be more easily exploited, such as the relation between price and value
Competition can force companies to make irrational decisions, which can lead to self-destruction and market failure.
Information Overload and Lack of Information.
Generally speaking the positives outweigh the negatives, but American culture ingrains the belief that competition is 100% Good when its really only like 75% good.
As for the Debate about MS, I think that MS needs to stop being so greedy and focus on improving the gaming industry rather than turning it into mainstream entertainment. The OG Xbox was a step in the right direction.
Also IMO, Competiton with Xbox resulted in the PS3 more than Sony's Hubris, it was just the hubris that everyone reacted too.
In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank














