"Good artists copy. Great artists steal." That really is an incredible quote and as true as anything I've read this side of Socrates. Taking something from another source and making it your own is a fundamental part of business.
It's actually to the credit of the current Xbox division leadership that they realize this. The PS4 is at the top right now, and not without reason. What Sony is doing is working. Microsoft cannot simply look at themselves, they need to watch the competition. Do your own thing, of course, without doubt, but never be afraid to replicate success.
This is exactly where Nintendo fails. Nintendo leadership NEEDS to watch what is happening now. They need to watch Sony, they need to watch Microsoft, and they need to understand what is going on between them. Never, ever be afraid to give people what they want, even if what they want was someone else's idea first.
The success of your competitors can become your success, which you can then build on in your own way.
