[quote name='The Crotch']And what would Gamestop do? Not sell Call of Duty? Not sell Madden?
Not saying there wouldn't be gambling involved. Just saying that the dice would be weighted in Microsoft's favour.[/QUOTE]
I'm not so sure of that. You discount how heavily the publishers rely on retail to sell the products to the end user. IF there were a widespread refusal of retailers from selling titles for the xbox 720, it'd be DOA. Think about AO or 18+ rated games. Basically no retailer is willing to sell them, therefore no publisher is willing to make them, because although there is nobody stopping publishers from selling AO/18+ games via other distribution channels, it would not be profitable owing to low volume.
Take GTA for example. It was rated M but then the hot coffee thing happened and it got a temporary AO rating. That instantly brought it off the store shelves, and Rockstar was forced to stop manufacturing the game, fix it, and re-press a whole new batch of disks, all for a piece of code nobody would really see anyways but that got the game the tainted "AO" rating. Without retailer support a game has zero chance in the marketplace.
I think each side has a pretty strong hold over the other, and the stakes are too high on both sides for anybody to really rock the boat with a bomb like this.