Their mistake was the reveal. Not just the features planned, but the announcing of them, the complete clusterfuck of execs on twitter handing out mass confusion, other execs giving out responses to questions some people found smarmy, all of it. I work for a retail agency with clients like Walmart, to this day I encounter plenty of people who think the Xbox One requires an Internet connection and cannot play used games. It's amazing.

It was a blunder that will take a long time for them to overcome, similar to how it took years for the PS3 to really overcome its disaster at launch. Personally I would not be surprised to see MS shorten this gen to 4 or 5 years and launch the Xbone successor early. I actually hope for this, we need more power imho. PS4 and Xbone just don't cut it.

This is 100% right, but in Sonys case PS2 dominance was so hughe that some fans just stuck with the company even on the early days of the PS3 and its insane prices, wich helpped Sony correcting the consoles course and eventualy tie for the second place (the lead if youre only counting core games/gamers therefore disregarding half the Wiis userbase) with the 360.

Microsoft did not have a PS2 last generation to save them now that theyve done all the wrong moves with the XOne. Theyre trying to correct the consoles course and solve the problems but it might be too little too late.