There is really not much difference between the PS3 and 360 in terms of power. They both do pretty much the same thing, and it all comes down to who is making the games. PS3 is better at garnering exclusives, however, because Sony is much better at handling third party relations. Microsoft doesn't care about exclusives as long as the newest version of Call of Duty sells the most on their system, which is why they have sunk so much money into getting DLC a month early instead of getting exclusive games, or even exclusive content. They also have been focusing on non-gaming features like watching sports on the Xbox 360, because these extra features require an Xbox Live Gold account that you have to pay for (even for the services that do not cost an additional fee to use on PS3, like Netflix).
MS's current strategy will make for a poor legacy for the system, but it is making them lots of money, and given how much money they lost on the original Xbox just to get their foot in the door, I imagine that money is a lot more important to them right now than looking good. If the 360 was all about showing off their corporate might and they didn't care how much money they lost (as was the case with the original Xbox), they wouldn't have closed most of their first party studios for not being profitable enough. Methinks Bill Gates decided it was time for the Xbox division to either sink or swim, and that unfortunately meant that they had to stop spending money on cool stuff like exclusives and put it towards things that would be more immediately profitable, like Kinect, non-gaming services that require a frivolous subscription fee, and early access to DLC. They made the Xbox brand profitable at the cost of giving Sony the edge in game selection.
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