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Quote: Originally Posted by Lokie Well the way I see this can make money for them...MS. 1. They can make more money from the games that go to these systems 2. They get a fee for every system loaded... This gen will last 2 maybe 3 years before the next gen and it will take a bite out of Sony at least they only could hope.

1. and 2. are both correct. They need more market share, Sony outsold/outsells the xbox by a high margin. Most real gamers have one and/or a PS2. Other companies could likely make cheaper knockoffs, without MS having to pay to develop a cost-cutting version 2. These would be for little Tommy's fifth birthday, casual gamers without an xbox, and possibly for non-USA use. Licensing the hardware lets them reap the benefits without spending capital; which is a win-win situation.