Taking a bad situation and in the end emerging in a good business position.
My personal opinion was that MS knew the risks, but knew that in order to grow as a business, they needed a head start.
In short: Gain marketshare and userbase now, fix hardware issues down the road. And now that the issue is fixed (albiet 7 years later), 360 has a sizeable install base, still 2nd place, and great 3rd party support compared to last gen.
Thank god this gen isnt a 1 console monopoly like last gen was. This one seems even all around.
The end justifies the means.