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The main thing they did was flub the launch.  They bundled in Kinect, so it was more expensive than the PS4 while having a worse performance.  It was a worse value.  After that events snowballed in PS4's favor and against XB1 like more third party exclusives for PS4.  Microsoft decided XB1 wasn't worth giving serious support so they eventually kind of gave up on the first party front.  But it can all be traced back to how they flubbed the launch.