I don't harken back to the 360, I go all the way back to the original. That console was a fucking Lamborghini. It was forward thinking, an absolute BEAST spec wise and focused on hard core gamers only. That is the template I would use.
I would get my hardware team to create a console that was at or slightly above the very best PC a person could build, buy a bunch of huge AAA games and make them exclusive, rebuild my first party team to make great first party software and then I'd sell the hardware at a massive loss and then recoup that loss on software. I'd also hire an aggressive marketing team and go all Sega-like. I'd have them make Nintendo and Sony look like inferior has-beens (not that they are, but this is what I'd do if I were in charge of Xbox). Then, to top it all off, the console would launch for $399.99 or less. Games would be $50.00, XBL would drop to $40.00 a year.
Microsoft has the pockets to make all of that happen. I would persuade them to do so.
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