Yup, Demon's Souls is the first thing I thought of reading this thread.Microsoft spent $100 million to keep rise of the tomb raider off PlayStation for 1 year. How much do you figure Spiderman cost to make?
Sony did not use their internal studio to make the game, their internal studios were busy working on their own games.
They all take risks when they want to.
Insomniac just made Sunset for Microsoft during that time period so they had a close relationship with them too.
Someone made a bad call in hindsight but I'm sure they weighed the options at that time and were ok living with it. It happens all the time. Sony refused to publish Demon's Souls in the west because they did not believe the IP would be successful even though they owned the IP. These things happen.
It happens. It is what it is.