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As far as this being a case of advertising the competition, it's the advertising agency that fumbled this with a bad stock photo entirely. The ad seems to be about Vista and I don't recall very many PC titles that allowed for split screen or multi-player options on a single screen. The whole thing is a bit of a flop.
Its not like someone is going to go "Hang on!! Is that a PS2!?!? HOLY SHIT THAT MAKES ME WANT TO BUY A PS2!"
Even if they did, there's a difference in the fact that most Sony's actually come with Windows installed because Sony isn't competing against Microsoft in the OS field. Microsoft is a direct competitor with Sony in the gaming world, so this is quite a significant gaffe on their part.
I love the line "games may not be availble...", the MS games are old, badly written and time-wasters, not "real games". If thats what they need to push for vista then MS is in bad shape.