MS needs to hit it out of the park with media features and kinect 2.0. The industry is changing and it's not about gaming alone any more. It needs to sell itself as a proper media box and it's that way it'll stay relevant in this current climate.
As for Kinect 2.0, a new generation would bring with it greater precision and reduced latency. I am tired of using the same old controller with buttons. It scares away the casual crowd, marginalises people with disability and holds back innovation. Also, it would contribute to mitigating obesity as it demands great physical movements from the operators.
Also, it's a crying shame that "always online" for gaming will not be realized next gen. It would have helped them with gathering network data for improved stability, more precise targeted ads and cutting down on piracy. Once again, progress was halted because of rough experiences with D3 and Simcity, merely two games.
Anyway, as for the rest, MS understands the market condition far better than any of its competitors. The WiiU's performance is proof that gaming isn't what it used to be. The media features and exceedingly innovative control interface are the two primary pillars that will ensure dominance.