This will make E3 a lot more exciting, to be sure. Winning March NPD might have given them some false hope in terms of how things are headed. This will ensure MAJOR changes. They're going to open the floodgates on total madness there, bank on it.
Also, people are delusional if they truly believe that sticking with Kinect is worthwhile if it means a higher price.
We live in a socially-connected world, and losing inertia to your competitor early in a large and consistent way is a path to failure and irrelevancy in respect to competitive AAA gaming economics. What simply happens is that people start buying console A because all of their friends are buying console A and they want to be on that page.
Even multi-console people are a loss to them thanks to the multiplats being usually superior on PS4. So someone with a PS4 and XB1 would be fairly likely to only buy exclusives for the XB1. As opposed to the U where the exclusives ARE the reason to own the system, and there are more of them (and they hold high pricing for ludicrous periods, watch MK8 still be $59 in two or three years on).
So yes, watch for massive moves at E3. Heads are exploding all over MS right now.
Dare I say it : $299 kinectless XB1 w/1 year of XBLG.
Likely? Only moderately. But that is dramatically higher than if they had comfortably won March NPD with their $449+Titanfall effort.
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