MFNs control the supply artifically. By attempting to limit the supply of new content to competitor's platforms, it reduces consumer surplus and increases costs for content creators.
It has been a relevant problem in the cable industry for decades. Yes, the cable industry, one of the most grossly inefficient parts of the US economy:
http://online.wsj.com/news/articles/SB10001424052702303410404577466940749077080
The case is even more clear when applied to videogames: Microsoft is artificially controlling the supply and cost for competing platforms by designing contracts with MFN clauses.
Awesome.
Now my final question:
If Microsoft is indeed attempting to artificially control the supply using MFN clauses, how, then, does that work in their favor when content creators simply skip them altogether for a competing platform that doesn't feature the same restrictions?
Is this due to the opposing platform's success, or the nature of the restriction itself?
Certainly, the success would far outweigh the restriction. If anything, the restriction just adds fuel to the fire.
In an ideal situation, indie game development for consoles would be: Xbox One --> PS4/PC/Wii U
That in and of itself doesn't really account for simultaneous releases on Xbone/PS4, but it still states their intention.
In any case, my point is: how is it [anti-consumer], when it doesn't even benefit the platform that's implementing the policy? Barely anyone's following it.
NOTE: The part in braces is erroneous. I meant to type "anti-competitive", not 'anti-consumer".