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I own and use my Kinect on a near daily basis and have to say this article helps illustrate some of Sony's overall problems.  First off, holding a glowing ball is not "sexy," being able to perform yoga with a personal instructor in front of your tv while doing nothing other than wearing what you wear is "sexy."  The ability to fire up the xbox and say "xbox, Zune" and have it launch right into the Zune application is definitely sexy.  

I think that Sony focuses too much on the "hardcore" gamer and not enough on the actual gamers out there.  This can been seen in their interest to value things like framerate, graphics, or the amount of in-game users OVER actual functional gameplay.  Put another way, if Killzone 2 played as well as it looked, they would have their very own CoD style sales.  Anyways, I think it is just a case of the "big guy" losing sight of what made them big in the first place... innovation, great pricing, mass marketing where did you go?