I dont know about you guys but I think their priority has changed lately. 

-Theyve had a massive revamp of the Xbox Dashboard. (Yup, one of the beta member crew) 

-60 entertainment Applications. PLANNED to double by the next year. (Thats not even including the ones in E3)

-Kinect voice control push and research. (You guys sgould try it out, its amazing) 

-Now the Xbox smart glass. (Which practically slaps Apple/Google (Nintendo) in the face but somehow doesnt affect Sony)

-Huge revamp of the Music distribution. (30 million tracks)

-Web browsing (I think its just a bragging right)

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Dont get me wrong, I think as a Gold member I think its pretty sweet. However, it sounded more like what MS would do against a Apple/Google rather than Sony. 

What do you guys think?

(Honest oppinion, No trolls)

I don't really think they are competing with Android but maybe apple TV and such. I would say we will see something akin to this at next year's e3 for Sony using Android tablets on the ps3 or maybe even the ps4. This application only works on windows 8 devices right?

THATS the point. 

If Sony were to implement features for Androids. Well it would be overshadowed by what MS is doing for the Xbox right? I wont nearly be as much features. 

I've thought this for 10 years. The Xbox brand was created to prevent the tide of digital devices making Microsoft irrelevant. Even with the Xbox, it has begun to happen. They are slowly but surely integrating all aspects of digital into the Xbox and will build from there into their other platforms.

i do agree that the Xbox is moving awe from Gaming and focusing on Apps/Distrabution.
i only hope Sony go this way but keep Gaming as number 1.

What Ms is doing is very cool.. but not on a games machine.

Apple and Google don't have home consoles so no MS isn't competing against them directly.

Microsofts direct competitor is Sony. That isn't going to change any time soon.

However, there are different strategies to winning a war and Sony must remain vigilant.

No, they're still competiting with Sony and Nintendo mainly in this sector, they're just doing what they can to expand however for that extra value.

The Xbox was never about Nintendo. It still isn't. It was about trying to stop Sony (whoops, turned out they weren't really a concern at all) from dominating the living room. The goal is still the same, only now MS is chasing Apple/Google because they're the ones pushing toward the living room space.

I wouldn't say MS is chasing Apple/Google. They are actually leading. Google TV has all but flopped and Apple TV really hasn't gotten the foothold it needs. MS is sitting pretty with the living room right now, and they have to do whatever they can to continue to dominate.