Did Valve have a falling out with Microsoft?

"The PS3 is a total disaster on so many levels, I think it's really clear that Sony lost track of what customers and what developers wanted," said Newell. "I'd say, even at this late date, they should just cancel it and do a 'do over.' Just say, 'This was a horrible disaster and we're sorry and we're going to stop selling this and stop trying to convince people to develop for it.'"

This is certainly a turn of events for Valve as Newell is the guy that can be quoted as saying