I just hope Paralives can compete. The Sims can use some healthy competition. The Sims is a very niche game but has appeal across all age groups which is really why it does well. I think the competition will force them to make a better game or people will just move on to Paralives.
I do have some concerns because EA is pretty cold-hearted. They don't have a problem getting rid of games...just look at Sims city and shelved Mass Effect. If Paralives takes the players, I wouldn't be surprised if EA just stopped making more Sims iterations.
