Like many other people I have been watching the brutal battle between Microsoft and Sony for HD gaming dominance with interest.  I have come to feel that dispite all the great games that have resulted from it there are simply far too many casualties happening among third-parties.  I think Sony for the sake of the entire industry should consider leaving the hardware side of the business and here are my reasons why:

1) Multi-platform development would become cheaper.  The simple fact is that the PS3 is significantly different than the PC and 360 to develop for and third-parties would benefit from not having to develop and publish games for it.  Delays caused by multi-platform development would likely be greatly reduced as well as the cost.  Also the PC and 360 are simply easier to develop for.

2) Sony could likely sell more of their games on the competitions' consoles.  LittleBigPlanet?  LittleBigSales is sadly more of an apt name.  Simply put their exclusive PS3 games would likely sell more on competitor's consoles.  Imagine the sales of Uncharted on PC and 360 compared to its sales on PS3 alone.

3) Microsoft has more of a vested interest in the living room.  Simply put Microsoft sees a multimedia "PC" in the living room as a threat to their core business.  Sony on the other hand would still see their movies digitally distributed in living rooms regardless.  They would still have their TVs and Blu-Ray players and would not be locked out of the living room and possible the entire house like Microsoft fears happening to itself.

4) Sony will have a much harder time next generation.  They came off the most successful console in history which helped to shore up large losses caused by the PS3.  Next generation it's likely the PS3 won't be the gravy train that the PS2 is which could make the PS4 far more riskier.  Add to that the fact that Microsoft is now making significant inroards into former Sony strongholds and it's not unimaginable for Europe to fall to Microsoft next generation much the same way North America fell to them this generation.  Not even Japan is safe for Sony anymore as seen by Microsoft's relentless attempts to gain marketshare there.

5) Deep pockets may be required from here on.  Microsoft simply has far deeper pockets than Sony.  Eventually Sony may reach a point where its console games aren't selling enough to justify their cost.  This is especially true since Sony relies on their own console for game sales while Microsoft easily and cheaply spreads it games among the 360 and PC.  Without some kind of innovation miracle Sony may simply be forced out like Sega was.  Also Sony saved some money this generation by third-parties making games for the PS3 expecting it to be the dominant console.  It's unlikely many will do the same thing next generation.

Anyways I doubt Sony will leave the console wars, at least not for another generation, but I hope third-parties are able to weather the storm that can be partially blamed on Sony.

 oh yes...i forgot how reliable the ps1 and ps2 were.....  it took them 3 tries and microsoft 1.