From what has been shown, the XB1 appears to be heavily reliant on previously existing services in the household. As bad as something like forced online requirements for single player games and other anti consumer shenanigans they are trying to pull, in my opinion this systems true achilles heal will be it's dependance on other services.

The problem with this model of device is the same as many before it. It's analogouss to tryin to sell a peripheral (for example kinect/32x) to an established but limited install base (total 360/genesis for example). Historically/logically this type of dependance on other devices and/or services always limits the total number of potential buyers.

In the case of the XB1, it appears to depend on at minimum home internet. I'm to lazy to investigate internet infrastructure around the world, but it's obvious the sellable market for this device will be significantly decreased due to areas/countries with poor internet infrastructure. In addition, even in areas where internet is available, customers who were previously offline gamers or gamers who do not pay for home internet may not see the system as a viable option.

Next you have the XB1's reliance on intergration with services like cable television or some form of TV service. The system's appeal and functionality appears to be dependant on potential buyers already having these services. Overall as a device it appears to have been designed to enhance other services more than anything else. This dependance will further limit the pool of potential buying customers to those with existing cable service (verses say everyone). The reasoning being, for someone who doesn't have these services (I personally haven't had/watched cable for years) a large portion of the systems functionality will be completely unavailable/dormant and therefore the system will be less desirable.

Any thoughts on this?

That is how I feel, yes. They are aiming to limit their target market.

I've thought of this too, and the only logical conclusion I can reach is that MS has completely given up on marketshare.

They don't care about gaming or beating Sony. They are after the living room, Google and Apple, and this is their stepping stone. They know they'll sell less than PS4, although they may profit more than Sony from the Bone.

well I do not agree this was true last century.... considering that the US has one of the worst internet infrastructure in the western world I wouldn't be too concerned about that....

developed countries are rising fast but piracy is an issue over there, so concidering they make very little money on the console and make it on the games the eventual loss of customer on those market is negligeable..... and the third world countries are not a target audience beside the higher classes in those countries maybe and they probably have what it needs to work....

so far the situation to me is summed up like that : (quote from a Forbes article)

Both of these consoles still badly need to justify their own existence, and I’m not sure either will be a runaway success. Sony has plenty of time to come back swinging. But what I saw from Sony’s PS4 reveal was more of the same. What I saw from Microsoft was all of that old stuff with a lot more added on top. When it comes down to buying time in the fall, I think we’re going to be looking at two fairly similar consoles, with fairly similar pricing schemes and software lineups. The difference will be all of Xbox One’s new features, and that could sway purchasing decisions.

The only logical way to solve this problem is for the box to come with the services it's dependent on. Which means they will have to partner with one or more of the large net/cable provider and offer a cable/xbl hybrid type of service subscription. IMO this is what they must and will do, and they will do it to subsidize the cost of the system too.

If they don't go this route I see XB1 sales potentially struggling due to the decreased size of the addressable market.

For me it seems like the console gaming business is like harvesting. MS seems to want to only choose the best, sweetest, freshest, pieces to harvest and in doing so collects great fruit. But in the end harvested very little and won't have enough to survive the winter.

what you guys are talking about ????? everything on XB1 is about 99% the same as what PS4 has to offer plus extra service.... how does it cut a part of the customer if anything it adds up a layer that PS4 can't collect on....

Here's a quote from someone on reddit in a qa with some ign folks. A little of topic but further illustrates potential problems with this type of device; why buy a half functioning console if you don't have the services needed to make it work.

"People who live outside the US will know how late we got access to Netflix, many still don't have it, and we still don't get many of the entertainment services. To us, the 360 only had half the functionality they advertized in the US. But it was alright, because 360 was still mostly a game console, so you got what you payed for.

But the Xbox One seems to be a 50% TV-box and 50% game console, especially given the rumors saying half the memory is locked for gaming. So unless the TV and entertainment features are supported outside US, we're paying full prize for half the product.

Do you know anything about this? Will the sport features work in Europe? Will the DVR and TV functionality work for our brands? What is their strategy for Europeans, if they have any at all?"

It all depends on the persoanl glasses one uses. And especially I see some people again who think that you have a limited way of possibilities.

Say you have 100 buckets available: Sony-fans currently see that Sony is using around 90 buckets for gaming, 10 for "other". And they say that MS is using way less buckets for gaming, let's pick 50 and 50 buckets for "other" so they conclude "way less gaming!". But what if MS has 140 buckets? What if they spend 50 buckets for "other" and 90 buckets for gaming? "don't believe it, it's M$".

The logic fails if you assume that MS halves "other" and gaming because you don't know how the ratio is and explicitely don't know how much gaming will be in an absolute value.