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I've read on the WarpPipe forums that the reason they are accomodating for another party breaking into the market, is because they don't want their ideas to be stolen.
Well, the "Another party breaking into the mobile gaming industry has expressed interest in the Demasked service" part of the N-Sider article seems pretty clear-cut to me, but I suppose it could be possible that...
Step 1: Ken Kutaragi, President of Sony, approaches Warp Pipe.
Step 2: Kutaragi says "Your Internet hype was brought to my attention, but I can't figure out what, if anything, Demasked does, so rather than risk competing with you, I've decided simply to buy you out."
Step 3: Warp Pipe founder-guy says "F
arm you! We're Nintendo fanboys! We have no need for money!"
Step 4: Kutaragi turns around and leaves, with a great deal of angry-sounding mumbling in Japanese that the Warp Pipe guys couldn't quite make out.
Step 5: Warp Pipe founder-guy says "Oh f
arm, he was really mad. What if he steals our idea once he figures out what, if anything, Demasked does?"
Step 6: Another Warp Pipe guy says "I know, lets make Demasked so super-awesome that once we reveal our idea, it'll be too late to steal the idea, because the PSP will already have been killed by our super-awesome idea."
Step 7: Warp Pipe founder-guy says "Awesome thinking! That's much better than my idea of pushing Kutaragi down the steps! So... what was that Demasked thing supposed to do again?"