Wow, microsoft not using the IP hammer? Finally they realize that people don't profit of this and just do it for fun. I'm not a fanboy of either side but do not own a PS3, but find it comforting that even the most strict people are starting to lay down their bricks. Although the last statement:
QUOTE
And no one is taking characters from PlayStation games (do they even have any games?) and putting them on our platform
Does the Xbox 360 even allow for this? I know the XNA is to make your own games, can they mod others legally? (without hacks like the guitar hero ones)