I think they didn't really plan to release the XB1 in 2013 and just weren't ready.  The stuff that they have fixed with the first update were things that I was amazed weren't there at launch.  I think they planned either a May 2014 or even November 2014 launch.  It seems that they didn't want Sony to get a year head start and just plowed ahead.  The systems tools for the developers weren't ready, even Killer Instinct only had a couple of characters.  They still don't have one Kinect focused game released yet!!!  The Sports Rivals game looks like a pack in game more than a stand alone.  It should have been included from day one.  They don't even have Direct TV/Charter (large satellite and cable providers in the US) support natively yet.  How about 3D Bluray?  Hell, a $50 bluray player can do that!

Just look at the number of countries they have launched in .They seemed to have a problem with the language/localization issue that is stopping further deployment.  Part of it relates to content providers to do the advanced TV features that they are pushing.   The real answer is the KINECT.  The Kinect forced them into a number of system features they weren't really ready to support language wise or media content wise.

They probably could have come closer to the PS4's price 6 months or a year later also.  Had they let Sony release a few more details of their system first, they might have been able to make some changes to better compete tech wise also.  Or atleast, they could have changed their mind on the forced Kinect pack in.

One way to look at it is, they wouldn't have changed the number of sales that the PS4 has, as it sells every unit available even with the XB1 in the marketplace.  Would it have changed things too much to let Sony have the 6 million sold before they launched?  Maybe not, as they have a 2 million lead anyway already.  Had the XB1 been improved somehow spec wise or price wise, they might have been able to keep pace at launch and kept the gap to 3-4 million on a consistant basis.

Either way, I enjoy my XB1, and don't regret buying it at all.  I guess, I have more to look forward to as far as system updates and game optimizations.  It would have been kind of cool to have Titanfall as a launch title though!

If M$ dropped out of the console business, they would be giving up all hopes of a unified system to deliver content.  That was the whole point of Windows Phone and Windows 8 and Xbox One.  Soon enough, you will be able to purchase a number of games and content that will play and be usable across all of the M$ platforms.

Gaming isn't Sony's main business.  It just happens to be the only thing making any money for them right now.  They too are trying to keep a foothold in the living rooms.  They also recognize that that isn't enough and are working on systems to sell their vast amount of content through all channels on the internet, not just the PS3/PS4.

Very well put analysis. I agree, I think they wanted Titanfall as a launch title. Hmmm, well too late now. I think they are done for personally. PS4 will win this gen. 

Stop saying gaming isn't Sony's main business. It has been a major form of profit for them especially in the wake of their issues. A lot of people investing in MS don't like the gaming industry. Sony historically speaking thought the gaming industry was a joke but today it is their bread and butter just like Nintendo. Microsoft could leave at any time just like they did with the Zune. They jump on companies with multimedia products  when they feel threatened.

No, this would be a stupid decision.

You people dond´t have a clue how custom IC manufacture work. You can´t just ask for a new dice with a bigger GPU to the foundry and the next day you have a fully functional APU ready to test and code. It takes months for a new IC design to be approved and forged... and it costs hundres of thousands for each minor revision.

The XOne was planned to 2013 since 2011, the first SDKs were distributed at early 2012, with a very similar configuration we ended up with.

One year, or six months delay woudn´t make any good for Microsoft but lose milions in development and market share and software sales.

Not having a clue is where you are at.  It has been clear in my OP and comments that I too thought that changing the GPU would not have been an option. 

Either way, losing 50 million up front because of a design change whatever that may have been would be peanuts if you sell 40-50 million less consoles throughout a generation.

Landguy said:

The 6 month delay would have allowed some hardware changes.  Remember, both Sony and M$ announced the basic system specs almost 6 months before launch.  I think they wouldn't have bothered to change the look of the system, but they could have certainly made some memory changes.  That alone would have had an impact on the overall system performance quite a bit.  They also might have had a chance to change the GPU, but not as likely.  The gap would have been much smaller just with the memory change.

As far as a domination by Sony if they hadn't launched goes.  Haven't they dominated even with the launch of the XB1?  Sony will have sold close to 7 million(or more) units by May 1.  The XB1 will be behind by 3 million or more by that point.  If the had delayed their launch, they could have had the focus on them all alone.  They would have probably closed the gap from 7 million to 3-4 million by Christmas anyway. THey would have been ready to sell the system in more than 13 countries.  Also, they wouldn't be fighting such an uphill battle perception wise.  They would have a lot of heavy hitters for games and the abilities of the machine would have been up to speed with more time to work on all of the software issues.  It would have had a much better ability to "Wow" people with not having to fight Sony's launch PR and Christmas keeping the focus off of it's machine.  They could have probably launched for $50 less too, losing $20 or so per machine vs. making $10-15 now.  Again, making the machine more appealing.  People don't mind spending a little more for a "newer" thing.

No, the losses would be far bigger than 50mi up front.

Sony alone lost more than 3bi with PS3 problems and Microsoft face a similar figure with RROD. Consoles are not easy or cheap things to build, or why do you think there are only 3 major manufacture on the market?

Without competition PS4 could sell way more than 15mi this year (if the price was the same). How could Xbox division would justify investiment 4 major studios building AAA games for a whole year, also the exclusive contrats for Titanfall, Ryse, Dead Rising, Quantun Break and  others?

Of course the XOne was rushed, of course there are things missing, but the 2013 release was the target date as far back as early 2011.

Your theory of M$'s fear of Sony is well documented in your comments throughtout many threads.  I disagree with it and that will lead to nowhere for us to comment on each others ideas.