I would not say that MS was complacent coming into the X1 gen, instead I would say narrow focus. This is where MS lack of experience and Sony gaining more experience came into play. MS forgot what got them their position with the 360 while Sony learned how they lost their position. Sony figured out that they needed to appeal to gamers first then everyone later while MS tried to appeal to everyone first then gamers later. Both companies will end up doing the same thing its just that the order or the decisions shaped the outcome we see today.
I agree with the OP that MS doesn't seem to be interested in pushing games that really just look great first. This was the same situation for each generation of Xbox. Sony on the other hand has always had a game that went all out even if it did not reach the playability people wanted. When you think about it, it makes sense as MS is not a retail company so they primary do not think on that level. Sony is a retail company and so they know and understand better the market.
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