I should point out that MS wasn't listening to the consumers even before the abysmal X1 announcement. MS basically abandoned the core audience in favor of the Kinect late in the 360's lifecycle. Transitioning into the next generation with only Halo, Forza, and Gears is a huge no-no. Meanwhile, the PS3 kept getting a wide variety of games that could only played on the system. Tales of Xillia 1 & 2, Ni No Kuni, Journey, Beyond: Two Souls, The Last of Us, Ratchet & Clank: Into the Nexus, Kingdom Hearts I.5 & II.5 Remix, Final Fantasy X|X-2 HD, Uncharted 3, Killzone 3, Rain, Puppeteer, and Tales of Symphonia Chronicles. It's no wonder why the 360's post-Kinect library was unappetizing in comparison to its competitor's.
Consumers buy the product in which they consider to be the best short and long-term investment. MS's lackluster support of the 360 at the tail end of last gen probably got the consumers thinking twice before investing in an Xbox system again. After all, this was not the only time MS has done this (i.e. pulling the plug on the OG Xbox in favor for the 360). There were probably a lot of consumers that went from definitely wanting the next Xbox to wait-and-seeing. However, instead of convincing the consumers, MS went the opposite direction with the horrid reveal and DRM debacle. The "wait-and-see's" turned into definite "no's".







