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Machiavellian said:

I personally do not know MS gameplan but I can definitely say that they have one even if they had to scrap their first one and redo it.  The end result is not going to be what we see today and the X1 will be a totally different product in 2 years.

No argument there. But MS isn't competing in a vacum. The have competition in the PS4 and its kicking their ass. And everything you said about their OS, has nothing to do with the fact that its still weaker hardware compared to their competition and said competition has the all important mindshare momentum going for it so far.

Simply put, what happens in 2/3yrs when MS miraculously turns things around with the XB1 but at that point the PS4 has 50M consoles sold to the XB1's 25M?

In the console biz, historically; there has never been a time when two consoles launched at the same time and whichever console took the lead ended up losing it before the gen ended. Right now its saf eto say that MS isn't rally competing with the PS4 anymore, they are competing with the wiiU.