It's pretty hypocrite told by them considering that the Playstation brand gained it's success mostly thanks to third party exclusives.
ResidentEvil/FinalFantasy/Tekken/Metal Gear
While the can afford to keep 3rd party games away form Sega and Nintendo systems they can't compete against Microsoft.

No...Square left Nintendo because they put last gen storage medium which didn't allow developers to develop what they wanted...

Sources:

http://www.edge-online.com/magazine/the-making-of-final-fantasy-vii

http://www.lostlevels.org/200510/

"Square was also accused of signing a deal with Sony to produce games exclusively for Sony consoles.

Most of these claims were nothing more than rumors that were spawned as the result of some shoddy journalism; however, many people accepted these rumors as fact, and these faux facts were perpetuated as being truths."

Yeah...so for the record: MS fanboy trying to justify their bribing over companies by saying Sony paid off Square can stop their lying now...

I know it feels good lying about Sony and Final Fantasy to make the spinless take over of Rare seem okay.

The ad campaign isn't money hatting since the heavy ads didn't start until the game was well into development...

Saturn didn't get it becasue of their ughhh....premature....console dropping, they pissed off a lot of 3rd parties by dropping consoles after erm...2 year and 4 year life cycles...32X and Saturn

They gained those by offering limitless storage capacity over its competition...kind of like how today the....oh nevermind.

Microsoft just sneaks up on Rare, takes a majority ownership and then leaves Nintendo with minority and forces them to sell there shares. 

I've never said microsoft its better and it doesn't change the point.....as for lititless capacity it's true for FF and MGS not for tekken still Sega also had CDs, not to mention all 3rd party exclusives on Ps2 important Final Fantasy, Metal Gear Solid , GTA (for a limited time) and minor ones Soulcalibur3, Devil My Cry, Onimusha, Okami,....

Sega had CD but they were thrown away by Sega's inability to support hardware and their tendency to premature kill there systems...32X used last gen storage and was supported for 2 years...Saturn was supported 4 years. 3rd parties were turned off by these things...One moment they're promoting it...next moment they're killing it. A lot of those companies had developed close working relations. There is no doubt the Kojima loves PS1,2,3 hardware a lot more the competition. Sony didn't show up and say "Here is a $50million if you go around saying you like us more." like MS did with Rockstar.

It's not exactly hypocritical in this generation of gaming.  If you'd like to go back to and recall the PS2 era or before, OK maybe.  However, let's look at the number of games each SONY and MS have paid for exclusivity or timed exclusivity on this generation..  I don't have figures in front of me, but I'm willing to bet the difference is quite large in SONY's favor of not having done it.  I'd suffice it to say his words were taken out of context..for anyone to believe that no company can or would ever do that is a statement of ignorance.  It will happen to some degree no matter what..what he was most likely referring to was the rate at which their 'competition' is doing it.  And my blind grandmother can see MS tries to buy everything they can.

Also, people keep saying 'GhostBusters?' Uhmm..no?  Before Sony did what they did, no one else was going to, no?  There was a reason SONY stepped in, it wasn't just to keep it exclusive.  If I'm not mistaken, since they couldn't find a publisher for the game, it made perfect sense since Columbia Pictures (an auxiliary of SONY) produced the motion picture, didn't they? That's a failed argument all the way around.

Matter of fact Resident Evil came out some year later on Dreamcast, Resident Evil 2 also on N64....Metal Gear Solid 2 and GTAs came out some years later on xbox.....not to mention that all 3rd party exclusives were lost when sony started to run out of money.....GTA4/FFXII/Tekken6/Resident Evil 5 and those aren't exclusives, it's not like microsoft has paid for them to be muliplatform.

Yes it did.  Developers exercized for freedom so it wasn't really bribing was it.  Bribing is a MS trademark.  "Oh cool, look at that amazing game on PS2.....go over give him $10million and tell them they can't develop exclusive games for any PS console"  Microsoft takes pride in bribing developers so it's Xbribe 360.  They paid $50m for...2 episodes.  Not even 2 games...episodes.  That's how proud they are in their practicses.  Also when they took Rare from Nintendo it was a record setting deal if Im not mistaken.  MS is an untalented spoiled rich kid that shows up to the talent show and just pays everyone off and gets all the credit yet brings no actual talent to the show.

What the hell are you talking about?  Nintendo was given the opportunity to buy the remaining portion of Rare and chose not to.  Then Microsoft came along and bought 100% of Rare including Nintendo's share.  There was no "leaving Nintendo with minority and forcing them to sell there shares".

http://www.gamecubicle.com/news-nintendo_rare_microsoft_official.htm

"With Rare founders Chris and Tim Stamper seeking an exit strategy and Rare's exclusivity contract complete, Nintendo was given the option of buying the remaining un-owned portion of Rare. Nintendo declined. Instead, Nintendo received $183m from Microsoft for its position. According to Peter MacDougall, Executive VP of Sales and Marketing with Nintendo of America, "Nintendo had the ability to continue its exclusive relationship with Rare, but in looking at the company's recent track record, it became clear that its value to the future of Nintendo would be limited... In other words, we passed on this opportunity for very good business reasons." 

It's expected that Nintendo will use the cash from the deal to invest in smaller development houses and expand relationships with larger developers as they have in the past with Namco and Sega. MacDougal states, "The disposition of this investment leaves us in a position to become even more aggressive in expanding our development capacity, both internally and externally. Aside from several partnerships already announced over the past year, we are currently in similar talks with several other prospective partners around the world." Nintendo is also quick to note that Rare contributed 9.5% to Nintendo's unit sales in the 2001 transition year and just 1.5% in fiscal 2002."

lol.  Of course the western deal was in place ahead of time, it was likely the main reason FFVII went to PlayStation over Saturn.  Saturn was actually leading sales in Japan until the FFVII announcement, if Square wanted to go to the leading CD-ROM system, they should've gone to Saturn.  Read your own source, Edge mentions the details of the Nintendo/Square split are still "yet to be explained" and they called Kitase's take of choosing PS1 for CD-ROM "predictably diplomatic".

Also L.O.L. at "spineless takeover of Rare".  If anything, Microsoft got swindled in that deal by the Stampers and Nintendo. Nintendo knew Rare was a sinking ship, and got a nice payout to let Microsoft take out their garbage for them. ;)