They're not "walled off". You don't need a special license to own an Xbox.
So? How is hoarding them not "terrible for the industry", according to your brilliant logic that it somehow limits the options for consumers?
Oh' heavens! It's almost like they're...competing in the business they're in or something. This has never been done before! I mean, it's not like Sony ever partnered up with a huge developer like...pfff...Squaresoft or anything, and kept their big franchises exclusive to take a bite out of their competition. Nintendo certainly wouldn't attempt such nefarious actions, like getting exclusive rights to a huge franchise like...oh'..."Resident Evil" or anything, either. This is so unique on Microsoft's part to be so heartless as to acquire exclusive rights to big videogame franchises, in an effort to get a leg up on the competition. It's outrageous!
Yet you can't articulate it in any logical, non-emotional rabid fanboy manner.