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He's right on his assertion about Xbox Live. Its momentum was probably the only thing that saved the Xbox One from a Mega Drive -> Saturn implosion. The decline on both sales and critical reception of their first-party games, specially Gears and Halo, is also concerning.

It remains to be seen how much of this downward spiral is carried over to the next generation. It can be argued that Sony successfully carried their rising momentum from the late PS3 to PS4 while MS's business practices similarly reflected what they had been doing with Kinect etc. with their new console. That... would not be a good sign at all.