Part of the issue is that PSN is free, and dependent on user content purchases, while Microsoft charges for server use for anyone who wants to play online; Marketplace content is available to anyone.
Sony recently added “PSN Plus” which charges $70 a year, but so far, there’s been little incentive to subscribe. Recently, Sony offered M.A.G. free for PSN Plus users, with the restriction that players could only get their characters to level 8 without purchasing the game. (Fortunately, all experience points earned while at level 8 would be added on purchase.)
Hirai said that sales on PSN topped 36 billion Yen this year, which translates to $430 million. In three years, Hirai expects PSN revenue to top 300 billion Yen.