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Soundwave said:

I think the question really boils down to this ... How bad does MS want to win in North America?

Can they beat the PS4 in North America? Sure they can. Sony is hardly unbeatable, in the large scheme of things they are small potatoes compared to Microsoft. But "winning" will come at a heavy cost for Microsoft, they will have to start cutting the price of the machine and soon. They will have to start moneyhatting a lot more games. They will have to spend more on marketing than Sony.

But if they want to open their wallet ... sure they can win. 

It's just a question of whether or not the desire is there or not, especially with new management at MS.

This is exactly right