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happydolphin said:

People giving the victory to Sony or dismissing Microsoft because they didn't show games at their reveal, no matter who they are, do not understand the nature of the business.

I agree with dana that the audience for the reveal was poorly communicated, but that doesn't change the fact that their strategy is viable in a mainstream society that doesn't often revolve around gaming.

The problem is the only people at the reveal were gamers and techies.  The people that Microsoft were aiming this event towards are more than likely not even going to see or hear about the console for months to come, so why didn't they just cater to the audience that they knew would be viewing the event?  The press conference showed that they Microsoft was less focused on the gamers, but who didn't already know that?  How many 360 exclusives in the past three years have most people actually been interested in  that isn't Kinect based?  Not many.

That wasn't even the only problem though.  That's only part of the problem.  Once we found out all those rumors we didn't want to believe were true.  That's when it went from standard crappy Microsoft event to, oh hells no.