It's the year 2006. You can pretty much 'hack' every electronic to some extent. Especially if it's a popular device like a game console. Sony and Microsoft purposely putting loopholes in their consoles? That's just stupid. One of the reasons Sony is using Blu-Ray is to prevent piracy of PS3 games. Basically everything you just said about people buying modded consoles which increases the console sales which encourages developers to develop games for it is just wrong
Hopefully you aren't either. Yes you are exactly right. People who do business take many factors into account. EXACTLY. How about this: Did you ever think that the console that sold more isn't as powerful as the console that sold less? I bet there have been more PS2 consoles sold than Xbox 360 consoles. But look, a lot of developers, big ones (Bungie, Epic, Capcom, etc.) are developing many games, big titles (eg. Halo 3, Gears of War, Lost Planet), for the Xbox 360, not the PS2. The PS2 is outdated you say? Well that's another factor that developers will consider. They obviously won't spend their time developing a game for a console that is not as popular anymore. Obviously it wouldn't sell as good compared to if the game were for a more popular console.

Guess you didn't take that into account did you?
Maybe they're not worried about hackable firmware. Has anyone actually tested a hack Xbox 360? Well a friend of mine has. Basically you need to flash the IC which is soldered onto the mobo everytime you want to play a new game. So you can play the current titles. No big deal. You can even go online without getting your account banned. But if a new game or update comes out, you're shit out of luck. You want to re-flash the IC? Go ahead. Re-flash it everytime a new game/update comes out. So basically you have to open your box, take out the chip, flash it, and solder it back on with risk of damaging it permanently. Have fun

Well that's one type of hacked 360 I've heard about. I don't know if there are other types which don't require re-flashing and such.
Too bad PrivateJohn is invading Europe. We need a lock on this topic and the topic title should be "I think I am smart"