MS has changed their focus though (For now). They got rid of DRM. They responded to consumer backlash, and Sony's competition and have responded accordingly.
Not defending them by any stretch, but they are essentially doing exactly what they need to do to stay competitive.
Aye, and that's good for gamers.
Most of the problem is that the hardware was designed around the original vision.
Honestly, they need to kill the Kinect in the box, and start chasing Sony on price. Follow up with some great exclusives, and really, they need to re-evaluate their Xbox Gold pricing and paywalls.
Additionally, their PR needs to change. Stop playing spec wars, stop with the balance nonsense. Anyone with a basic hardware knowledge knows that their box is lacking in key areas.
Look, Sony has been been guilty of some of the most outrageous PR nonsense in the past. They changed their message and focus.
MS needs to see where Sony was in 2006 and
stop emulating it.
Will any of that be enough? I have no idea. I'm not foolish enough to believe MS is dead, but they need to make some additional changes to make this gamer consider them this generation.