Actually it's not.

It is making people think that MS isn't focusing on games and that will cause them to get less games and more pointless apps { pizza hut app, really Microsoft]. This is pissing a lot of gamers off because they bought an xbox to play games, not order pizza.

The gaming devisions will focus on gaming and since Microsoft is making the new xbox  Windows based  the standard Windows guys will provide the multimedia apps etc since they are like 99% the same as the Windows apps in Windows 8.  So giving those guys 1% more work to do (getting sure every Win8 app made by microsoft has Controller support and voice support for kinect) makes more sense then giving the 99% xbox compatible  app to a new team that wastes time to find out what to do and how to change it.

The media aspect of the new xbox wont affect the gaming aspect.

The pizza hut app was most likely Pizza hut paying MS to put their app on the Xbox so that they could reach the young male demographic they said they found it hard to appeal to. Why would MS pay pizza hut for an app that will see very little benefit for themselves? 

1. Core Games
2. Kinect Games
3. Multimedia and Services.

For every resource that is there to support numbers 2 and 3, that is one more resource that could have been dedicated to number 1.

Yeah, I agree with this. One word to describe it is "vision". If their vision is to be this broad multimedia device I just can't imagine they have enough interest in satisfying the core gamers who really appreciate a varied library and niche games.

I believe MS is very very satisfied with how the Xbox360 performed in this gen, they don't feel they need to fund risky projects just to provide a varied library for the hardcore. Apart from their family and multimedia strategies I think they are only after the big guns, to make a new Halo and new Gears with their new studios, but outside of that they're perfectly happy with what the third party guys are doing.

Why spend hundreds of millions of Dollars on risky mid-market core games and compete for a relatively small market segment of perhaps 10 million hardcore gamers, a market that Sony already controls and owns the trust and loyalty of that market. I think that's how MS studio execs are thinking.

I hope I'm wrong though.

Sadly, I think you are correct. MS doesn't want to take risks and make games that may or may not sell. I think in the beginning, they will actually have many new games, and will continue producing games for the first 3 years, but after that, they will just focus on the big titles like Halo like they did this generation . Hopefully it won't be the case for the Nextbox though, cause all those game studios they own will still need to be making some games every year. 

Do you own a 360? Because I own one and don't know a thing about this supposed shortage of "core" games.

It seems to be something fans of other consoles have created out of thin air.

You are wrong, for one MS has stated that they are focusing more on core games, they have created more  studios and dedicated over 300 million to core games.

When have they said that and what was the wording? Even some Kinect games have been called core games.

The $300 million number doesn't mean anything if it's all put into the next Halo, the next Halo-killer, the next Gears of War and a Kinext "core" game by Rare.

The type of games that forum goers are endlessly talking about are the niche games, the games that give a library depth. The people want games like Lost Guardian, Beyond Two Souls, Demon Souls, MAG, Joyrney, Last of us, Killzone, SOCOM, Yakuza and Infamous Second Son. Mid-core games that complement mammoths like Halo, Gears, God of War and Uncharted.