So far the Xbox One is only really competing in the USA. It's already a long way behind in Europe and no one expects it to do well in Japan when its eventually released. Yes the USA is important but its still only one market.
For the Xbox One to compete in Europe with its much weaker spec it would need to undercut ps4 pricing. In the short term I can't see Microsoft doing that.
Titanfall is a new IP and not an established brand. It exists on PC and 360 too. This is unlikely to be the game that drives Xbox one sales. The new Halo game will drive sales for sure.
The failure of the wii u and the pricing and spec of the xbox one gives the ps4 a huge advantage this generation. Microsoft have basically handed this generation on a plate to Sony.
Really Microsoft need to be winning in the the USA significantly to stay in the race but as far as I can see they are level pegging. It may simply be that Microsoft are extracting as much money as possible from their early adopters before price cutting. I'm sure Microsoft realise their high price is damaging their sales and market share.
