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Intrinsic said:
The problem with your solutions is that they all require time to implement. Time that MS does not have. Software isn't just something MS can cook up overnight. And its not like the competition will be sitting on their hands not making great software too. Right now worldwide MS is like 3ml consoles behind its primary competitor in just 6 months on the market. That is just wrong so early in especially when you consider that you are in an industry where word of mouth is the biggest marketing strategy.

Removing kinect was a brilliant move by MS, their real big mistake was that they should have always made it an option from the start, $399 without and $499 with it. You only need to mandate hardware that is attributive to the platforms primary functions eg. a controller. Kinect is and was always just a novelty whose existence doesn't really make or break the primary way the console is used.

The most immediate remedy to any sales problem is a price drop, the only way MS could afford to do that so early is to take out the one thing that impacts the console the least. Though I don't think price parity is good enough.

This

I think this is exactly the same mistake Nintendo made with the Gamepad. They kept waiting for the games as if their competition was going to sit around and not make games as well. Now we see the results.

They should've done this as well on the first year of the console.