I think it was a combination of both the DRM and the Kinect bundling/higher price.
News gets around much better these days due to social media and sites like youtube etc. So there really wasn't anything MS could do to limit the damage of the bad PR around X1 at the beginning. Don Matrick made things 10 times worse with his completely ignorant statements.
We also have big personalities on YouTube who have millions of followers who all came out strongly against MS and were generally pro Sony.
I believe the DRM fiasco had a bigger impact on the hardcore gamer. As for the rest of the gamer audience (casuals, kids etc.) they were probably more put off by the high price. Obviously in certain cases the Kinect would have been a selling point.







