360 didn't do anything wrong. I think 360 was a huge success. If you look at how much they improve their install base I would say they did very well.
There is no way they would dominate Nintendo and Playstation, they just didn't have enough recognition in the past. PS2 had 150 Millions console sold with PS1 at 110 millions.
The 360 was on it's way to crush the PS3 until Sony released the PS3 slim and then Sony never looks backs.
Also Europe seems to be pretty much "branded" Sony and Japan let's not even talk about it.
It seems like the last 2 years microsoft was more focusing on releasing the One; to have yet again another year advantage over Sony; that would explain the lack of exclusives on 360 the last 2 years. But it seems to have back fired on them because now while Sony is releasing more exclusives on the PS3, they also manage to release the PS4 in the same month as the Xbox One.
I don't think 360 did anything wrong, just that Sony step up their game with the PS3 slim...
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