Lol shut up and enjoy Microsoft and stop being jelly.

Think about it. Let's say Sony's tactic works, and the next gen race starts tipping in Sony's favor. You've got them giving away free games (developer/publisher revenue goes down, as well as Sony's since they probably pay something to offer them for free), not charging for DLC (which can be a decent money maker for devs after release or from used games),and they still aren't charging for a decent bit of the console's features (which is a mistake). All of that could end up hurting Sony and Sony developers more than helping them. They may end up selling more consoles in the beginning, but once they run out of stuff to give away for free, you're going to have a lot of pissed off console owners. People have short memories, so when Sony closes the floodgates and takes the Microsoft approach, the Sony fanboys are going to blow a gasket. And don't say, "Sony will never charge for x, y, or z, and they won't stop giving away free games," because that's just naive. Surely you don't think that your $50 a year covers all of those free games, plus the network, plus the DLC, plus usage of other online Sony services? NEWSFLASH, it doesn't. Microsoft may look greedy, and they may very well be (because they would be the first company to make a product and service and expect to get paid for it, right?) but they are not setting themselves up to drown in the long run. They charge up front and then give away free stuff for loyalty. I'd rather have a more secure service with better support than have my allegiance bought with something doomed to fail in the long run. Enjoy the PlayStation Network model while it lasts, because I assure you, it will change, and not for the subscriber's benefit. If it does, then Sony obviously never has any interest in getting out of the red (which a board of directors generally doesn't let happen).

Sony makes enough money from selling TVs, Blu Ray, etc that they can do that and still make a profit. Microsoft would be able to do that to, but they don't have as many revenue streams to profit from.

Pretty sure Sony isn't just videogames. Guerrilla Games works with Sony so they get covered by Sony. Also the free stuff may just make consumers look at Sony in a more favorable light which could lead to more people willing to be a part of PS+. You're logic is too negative focused.

How so? You get 1 million people to come get free games, and Sony decides, "Well damn, we aren't making enough money to cover these people, so no more free games and all our apps require PS+ now." It's going to happen.