Microsoft made a shitload of mistakes with XB1, coming this close to creating a console nobody wanted. That they not only acknowledged their mistakes, but acted on and largely fixed them within a year, is very impressive and showed a lot of modesty. But it was no doubt costly, and probably a few close to the project saw their ego and pride taken down a peg or two, so it's really not at all surprising that we've seen the XB1 team reshuffled so drastically since launch.
The vision of XB1 was ambitious, but simply wrong for the market it was trying to woo, because it just didn't exist. MS was never going to sell a new console to people wanting a living room entertainment box, particularly when several very good ones were already on the market. They may start to chase that market again when more units are out there in the wild, but for now, they need to chase gamers, pure and simple, and they're doing a very good job of that right now.
