The reason for this is because Japanese companies have a loyalty to Sony because they are the gate keepers to Japanese sales. I wish Microsoft could just ask for that type of Loyalty from Namco and Square Enix, but they cannot because their games majorly sell in Japan. Sony has them by the balls.

^Wait a year longer to play the same game with minor improvements or play the game now?

I would rather play the game now instead of waiting 12 months. In 12 months time there would be better games worth playing.

Timed exclusives will continue in the future. Consoles receive some games months before PC receives a version of the same game. X360 and PS3 will both get timed exclusives if they are willing to pay the right price.

Sony doesn't seem to be paying very much for games this gen compared to last gen. They've lost so much money. The reason they can boss around Japanese companies is because they know their products will not sell without a Japanese company behind it.

No way...it's far cheaper for M$ to provide some seed funding to get a developer started on a game, then to have them as an employee...especially in Japan, where cost of living is high.  I think M$ has the correct strategy...beef up M$GS with the ability to work closely withthe developer to develop the IP and product reviews thru the development phase, but have them on retainer.  Look at Valve...sure they are owned by EA, but they are a cohesive unit...and if EA mgmt ever tried to force them to do something, they could tell them to pack sand and spin off...or quit and start a new firm....ala Bungie...and that was a agreeable split!