It was a sound business decision but for one small but hugely important factor. MS tried to enforce a monopoly market for used games and probably thought Sony would play ball and do the same thing, hell right up to their conference most people assumed the same. Instead, Sony have taken the gamble, possibly in the time between the MS conference and theirs, that the money they'll now clearly make from so many people picking up a PS4 rather than a Bone at launch and having a bigger, established customer base as a result will outweigh the cash they could have made from controlling second hand sales. I'm sure the Bone will recover but Sony are going to be in a really strong position for years off the back of this. Whoever made this call at Sony is due for a hell of a bonus whereas some people at MS are clearly gonna get sacked.
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Yup. This really was a godsend for them, ps3 might not have been the flop that it sometimes is made to be but they did lose a lot of money on it and seing how the company itself has fallen (lets not forget that they were kings of the world after ps2) so deeply into trouble they needed desperately needed something to gain a momentum on. And the terrible PR work of MS was the opening that they needed. Jason Rubin said it the best, Microsoft might have had the some new exciting features but instead of telling how it's going to help they tried to dictate what we should accept and use.
The thing that I'm wondering is how this will all develop in 3-4 years. I doubt that this generation will be any shorter than the current and what happens when the initial install base has been reached and one of them decides it's time to try something new that the other company can't do. No one is going to be releasing a new console mid-generation and there is a chance that e.g. MS really becomes a multi-media machine and Sony has the only gaming machine (and nintendo i suppose). That would in a way create a monopoly on two different niche markets. Will be interesting to see how both companies attack the coming months tho.
no homo