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I believe Killer Instinct is being celebrated just because it is only on Xbox (and PC). The game is too basic and vastly better fighters have been released this generation. It benefited from being released early, nostalgia and being one of the few exclusives Xbox One has. It's an easy to pick up and fun to play fighter, like most fighters, but nothing special. 

As for Phil's statements, saying "I've heard it all before" is tempting but there have been many actions taken lately by MS to make me believe they're gearing up for a bang in terms of next-gen exclusive content.