I seriously believe that Microsoft are in trouble this generation, and not just because of the low sales numbers. After their initial, disastrous reveal, they lost A LOT of good-will with gamers - at least those who engage with their brains and remain impartial to the companies that make our consoles of choice - whilst Sony has swept in to become the shining knight. Now Microsoft are left with an extremely difficult decision to make, do they:
A. Lower the price of their console, thus not only losing money but annoying a lot of users who initially paid the original price, revealing themselves as liars when they said they believe firmly that Kinect adds that extra $100 of value, whilst still failing to appease those who do not want/like Kinect. People may/will still wonder why they are paying for a peripheral they do not want.
B. Remove Kinect from the box, make themselves look ridiculous in the process, seriously annoy current users who have already purchased the console with Kinect, reveal themselves as liars when they said they firmly believe in Kinect, and completely abandon their original vision that said Kinect was integral to the console. Of course, this would also leave them with a console that is inferior/less powerful to their competitors as they would be removing the only U.S.P. they had, a U.S.P. that they have touted heavily.
I really do not envy Microsoft their position right now. They have placed themselves in a ridiculously difficult situation, and one I do not believe they can win.