I have a different view...
The problem for me is that the idea of an "all in one box" that isn't actually all in one... is part of the problem.
I will get to that in a minute.. but I really do think MS are going for a market that just isn't there, well not for $500. If we take stuff like BBC iplayer, netflix, love film etc, all of this can be done on modern smart TV's for around £400-500, you can also buy little android devices that plug in that only cost £20 that do the same thing.
As for some other aspects of their TV strategy, its not a cable box (requires input from another device), it's not got a very big hard disk (that cannot be upgraded so its not that useful for PVR - Sky boxes are 1GB I think upwards), and overlay content has to be made by 3rd parties - which will cost them and they won't necessarily care for different programs/countries - no incentive unless MS gets someone to make it all.
Yes kinect movement is nice, but not essential (there are some more expensive smart TV's that can do this now).
I think if MS really wanted to get into the TV unit business, they should have purchased love film (or whichever one isn't owned by amazon)... they should have purchased a big Music company and they should have purchased a big film company (MGM for example) with a massive back catalogue of films. Yes it would have been expensive, but I really believe the future is exactly what Sony and MS are trying to do and that is turn their companies into service led.. i.e the software (live/PSN) is available on all types of devices and you can buy content and play it back on your phone/tv or PC. That is where the real money is to be made... it's just that MS have made a device but not really been ready for what they are intending it for. Perhaps the core gamers that have been outraged at them have knocked them back a bit, and perhaps MS have lost a bit of focus.
Actually I see Sony in the best position to do this right now... they have much of this stuff in place, but whether they actually can connect the dots, I am not sure... but for me I don't think a device that is $500 is going to win the hearts and minds of those people who would not normally buy a console for the living room. To me it doesn't feel like the next "Blu Ray/DVD" needed device. Neither does the PS4. That's why i expect a similar total number of consoles sold across the board...
Making an indie game : Dead of Day!
