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MS should do a complete re branding of the system.

1. Drop the price by $100
2. Cut out the Kinect
3. Bundle the console with 1 great piece of software such as Forza, Titanfall, etc.
4. Do a new marketing push focused on the GAMER
5. Announce a bunch of new games and content.

I know many of these things are already semi happening such as bundled games and some unofficial price drops but MS should come out and officially do these things as a complete re branding process.