Microsoft has a very long history of screwing up once they get on top. They're great when they're the underdog doing the chasing, they tend to catch up over time. Once they finally build a great product, you can almost always count on them royally screwing it up. Then the process starts all over again.

It tends to be Microsoft dumping money into something to gain their top status, then once they try to make a profit on it they mess up. Their profit maximization formula doesn't seem to have a field for "will this lose customers?"

Isn't Activision is publishing Rovio games on consoles?

Rovio wouldn't exist as it does without the success of Angry Birds on mobile and the open market there.

On consoles currently you have to publish 4 titles a year to be an approved publisher. So they need them probably to publish but I am sure they would love to self-publish their own or it is more beneficial to use Activision now that they are bigger or need the retail side.

Small and medium companies that are up and coming like Rovio once was need open markets and self publishing. They shouldn't have to sign over a large portion of profits because they can't launch 4 titles a year.

Open markets allow some companies to break through, most wouldn't be there without the mobile game disruption.

I don't get what you mean by "app store." You can't have a closed publishing model, as consoles always have had, and allow full access to console development by indy game developers and channel access through an app store.