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The real problem: Yes XBox Live Arcade set the bar for Indies in gen 7, but things have changed. This is gen 8, now, and everybody--even Nintendo--is giving Indy developers so much attention when designing their marketplaces that XBox Live Arcade is no longer competitive. In fact, it's outright oppressive compared to the marketplaces on PC, Wii U, or that the PS4 is supposed to have.

Microsoft thought they could rest on their laurels and focus on big publisher concerns, like DRM. They thought very wrong.