In-house development focus over 3rd party exclusives. Is this the right decision??

[Steelmaker]

I think by now everyone understands that Sony is no longer interested in getting into a bidding war with M$ over 3rd party exclusivity. FF13 is going to be on the 360. It's a done deal. Instead, Jack Tretton has made it very clear that in-house developed titles will be where Sony puts their resources.

My question to you guys is, do you think this is the best strategy? I understand their reasons. Their thinking is that since 3rd parties are clearly determined to develop their titles for both platforms, it's going to be their own exclusive titles that will make the difference in consumer's choosing the PS3 over the 360. It's a sound strategy on the surface. However if you look deeper into the situation, I'm not so sure if it will pay off in the long run.

For one thing, all else is not equal in terms of 3rd party support. Sure, most all 3rd party titles that come out on the 360 come out on PS3 as well. However, things like timed exclusivity, features, and exclusive downloadable content are becoming quite a difference maker in the eyes of potential consumers. Up to now, all 3 of those have favored the 360. Yes, there have been some that have favored Sony but the lion's share has clearly gone to the 360. I could site examples but everyone here knows what they are. We've discussed them in great detail over the last year and a half. Plus we all know that very few (if any) multi-platform titles are being developed to take real advantage of the PS3 hardware. Sony touted their system as being the most advanced, most powerful hardware on the market. Yet no multiplatform title exemplifies this. At this point, 3rd parties are just making sure PS3 versions of their games are comperable to the 360 versions.

Another thing to consider is that for the most part, Sony's in house titles either have not lived up to the hype (speaking critically and sales numbers wise. Not necessarily based on my opinion or the opinion of anyone here on this forum) or are taking entirely too long to release. Now having said that, this could be entirely a mute point by this time next year. By then, Little Big Planet, Killzone 2, Motorstorm 2, Resistance 2, Ratchet and Clank: QFB, Socom, Wipeout HD, Home (hopefully), etc will all be out and hopefully they will all be every bit as wonderful as Sony is hyping them up to be. However what if they're not? Where does Sony go from there?