MS's plan is to copy what Sony did back when the PS3 Slim first launched which was a total rebrand and redesign. At the time, PS3 was getting murdered by Xbox and that entire sea shift changed everything and is what eventually allowed the PS4 to win back gamers. They're banking on the same success with their new revised console.
Having said all that, I think it's false to ignore Nintendo until we see what they're brining. The Wii was ignored similarly and it destroyed both Sony and Microsoft in sales and success.







