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Everything MS has done lately is purely reactive... not that they did not react well, given where they were early on.

Insert the corporations care about the bottom line, this is true, but who would just let a product fail without trying to at least fix it and the bad perception it got after the release, they do what they have to do, and they do as well as they could given the hardware they have (which is the root of the problem, it comes from the original decisions about the platform, when MS was selling kinect for the 360 like crazy... management drank their own cool aid).