I feel MS are hoping they can repeat the same game changer at the time, when the Wii came out. The Wii took them all by surprise and that's a rare thing.
The risk here is:
People now know about motion control. Also Kinect 2.0 is not an original idea.
Kinect 2.0 is a lot more expensive to make than a Wii remote. The point is, Nintendo also made money on the hardware out of the gate. People didn't care about HD graphics because hardly any of us had HD TV's at the time
The X1's main direct competitor is the PS4 which appears to have a strategy of emphasising the game hardware and social aspects. The X1 needs to do all that plus sell the idea to every gamer that Kinect is so much better for games.
Hence why MS are pushing Kinect for the living room just as much as for use in games. Product differentiation. Which then brings us full circle back to how the Wii pulled off just that - product differentiation. However the Wii was completely different to the rest. That's the difference, I think.
I can't see MS doing a Wii here :)
