Logic has been changed in kernel 3.4 by commit e9aba515
("tty: rework pty count limiting") but still not documented.

Sysctl kernel.pty.max works as global limit, kernel.pty.reserve ptys
are reserved for initial devpts instance (mounted without "newinstance").
Per-instance limit also could be set by mount option "max=%d".
Signed-off-by: Konstantin Khlebnikov <khlebnikov@yandex-team.ru>
Signed-off-by: Greg Kroah-Hartman <gregkh@linuxfoundation.org>