Ask yourself the following question:
If you were to develop a game and estimate that you can sell 1 million copies lifetime... Would you rather A) take home, say, $12 million in profit after all is said and done (over the life of the game's sales)-- i.e. marketing, distribution, development, etc., OR B) Perhaps get a guaranteed $12 million profit check up front, regardless of sales (and development/marketing is, of course, covered completely) and STILL get whatever income benefits come from launching it as an exclusive.
Everyone keeps saying that moneyhatting is dumb for the developer. I can assure you that if the contract does not more or less guarantee some benefit greater than that which the developer would get if they struck out on their own, they simply wouldn't do it.
I love how everyone here berates these decisions which are made behind closed doors and with a plethora of accountants from both sides making sure it is in the best interest of each party to do the deal. You can bet your bottom dollar that whatever MS offered SE for SO4 exclusivity is greater than SE feels they can achieve if they strike out on their own. Otherwise, they simply wouldn't do it. That's business 101, folks. Hate MS all you want for ponying up the dough (and SE for taking it) but if you were the exec and the deal was put in front of you, you'd take it, too. Time to get off the soap box.

















