They focused the great part of their attention and communication on the only thing that matters : GAMES.
They invested in first party, second party games. Went to third parties to get exclusives.
They designed an all around powerful, relatively cheap machine designed to play games, and have a few features on the sides like netflix and so on.
They listened to their customers and developpers, and just make the right product for the market.
Meanwhile, Microsoft released an overpriced, underpowered console, with a multimedia focus, and a Kinect that nobody wanted after the disappointment of the first kinect.
As for Nintendo, they kept focusing on useless accessories, selling really old tech with a really high price, churning out sequels with little to no innovation, remasters at full price, and cheaply made, unfinished games. On the hardware front, the same thing is happening with the Switch, besides Zelda and maybe mario, I don't anything worth my money.
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