Based on the early marketing it felt like Xbox division at that time felt a bit embarrassed to "just" be a video game console. There was a lot of emphasis on multi-media and remember television type integration. They spent big money on some NFL deal and looked like would have a television division with content similar to what Netflix does with "House of Cards".
The idea was a blue ocean strategy of getting non gamers as much as gamers to buy into it. They panicked after the massive wave of negative PR at unveiling and E3 to strip DRM components and then the Kinect was seen as more of an albatross than a selling feature with PS4 out selling them all over.
It is sort of amazing how different the X1 is now compared to its initial showing two years ago.
