3 Reasons, all interconnected.
Kinect - created a divide between the fans. MS couldn't make games for both Kinect and non-Kinect owners, so what ended up happening is that the exclusive content was split. Half Casual, half core
Sudden stop of 3rd & 1st party exclusives - This relates to Kinect because 75% of 360 owners do not own a Kinect device, yet after 2009 75% of 360's games were Kinect exclusive. Why? Core gamers interested in Call of Duty started to migrate to PS3 (as shown by increasing CoD sales on PS3 with respect to 360 over the years).
Over-reliance of core franchises - After 2009, too many Halo's and Forza's. I mean in the last 5 years we've seen 4 Forza's, but how many Gran Turismo's have there been? 2. Gears of War ended at 3, but instead of making something new, 360 owners got a piss poor prequel. etc.
Price - Kinect was an excuse for MS to keep console prices high. While Sony kept cutting the price of the PS3, MS just made more expensive bundles with Kinect. So while 360 started well as the cheaper console, it's the same price as a PS3 now, which makes no sense since it has no Blu-Ray, no SSD, and less features.
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I'm starting to think, the only reason 360 did well in the first place was because it was cheaper. A big reason why I got a 360 instead of a PS3 in 2007 was because PS3 was $600. When PS3 matched 360 in price, PS3 sales soared, and now that PS4 has released, $100 cheaper then XBO, Sony is outselling MS in their home territories (US/UK).
What is with all the hate? Don't read GamrReview Articles. Contact me to ADD games to the Database 
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