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Interesting read. I actually agree with a lot of points they bring up. There are a lot of benefits for gamers if Sony decied to drop hardware and turned exclusively into a software company.
As much as I love the PS3 its only the games on it that I really care about. Most of which happen to be first party titles from Sony. If Sony dropped out of the console race there is no reason as to why they couldn't still provide quality games. Even if they are on Xbox instead of Playstation. If you take a look at the number of diverse IP's Sony has and the number of in-house developers they have there is no reason as to why they couldn't become the biggest publisher in the industry. Bigger than Capcom, Activision, Konami or even EA.
As for the reasons why this would be a good thing for us gamers, let me explain. Firstly Sony wouldn't have to worry about the money they lose off the PS3 hardware. They would start making a profit and this money would only help them release even more titles than they normally do (which is already a lot). Secondly we would become closer to the "one console" future that everybody talks about. With less consoles on the market there would be more games on each platform. Having both Microsoft's titles and Sony's titles on one platform would make a gamers life a lot less difficult.
I can see it happening. Not this generation but possibly the next. Sony's strategy this generation obviously hasn't worked and in a worse case scenario I could see them turning into Nintendo and making a system based solely around motion control, which could threaten the quality of their IP's. The only question is if Sony could swallow their pride and bow down to Microsoft and Nintendo.