Wow I came in here thinking this was something important, boy do I feel stupid!

To think that a large company like MS does not plan 3 to 5 years for their product is to miss a very important situation.  This gen is not a race, there are plenty of move to be made, games to be created and bundles to be done.  Its no different from how Sony had to claw back from the brink with the PS3.  The difference is that MS is in a much better financial position.  As Puggsly stated, coming out 100 dollars more expensive then your competitor does not seem like MS is interested in gaining marketshare over profit.  MS will slow roll this year and will be happy with decent sales but not really looking to gain marketshare over the PS4 as long as they are selling.  Price cuts or incentive deals at Holiday time, including bundles will be their way to spur sales.  

Personally I am waiting to see the things MS feel make Kinect worth the bundle.  I can think of a few but even then the price of the X1 will need to get to 300 bones or less before even those features become mass market worthy.

doesnt this just mean developers wont use the C4 engine because if they do then they cant launch games on xbox one?

I do not think you know MS business very well.  MS has eaten those types of losses many times.  The First Xbox, Zune, 360 ROD, that marketing company, IPTV and  their smartphone, Tablet, Kin, bing.  The list goes on and on MS spending huge amounts of cash to gain marketshare.  With the new CEO, I can see the X1 going in that direction.  Reason because MS is looking to be a tools and service company.  You need products for your services and the X1 is one of those products.  I would not be surprise if MS do a 100 dollar deal at holiday time to spur sales.  

I believe that C4 needs to hold their tongue and understand who they are selling to.  Its not MS they are selling to its developers.  As a developer, I am sure they would want to be able to target as many systems as possible with the least amount of effort.  Why purchase an engine that limits the reach of your games.

It's not just this guy, there have been plenty of indies who have spoken out against MS and their indifference to the scene.

As far as cross game development, that only matters on a level playing field.

More bad PR from Microsoft.

Those developers spoke out about the policy but did not criticize the actual console.  The policy issues everyone can relate to and even MS understands the importance of making their development community happy.  Bitching about using the system before actually using it does not make you look good and who would want someone whining before they actually develop for the system since you know they will be whining all the way through development.

It’s pretty simple for developers.  You get the engine that does all the things you want not the one only do one thing.  With Unity already free for X1 indie developers, why would this engine be an option since Unity gives you all platforms including mobile.  Probably one of the reasons MS did not really respond to these guys is because they already had other plans which would probably conflict with those agreements.

Do not get me wrong, MS has clear problems with their policy and how they have handled things on the Xbox end.  This is a clear difference from how they do their development community outside of the Xbox ecosystem.  Nothing like a kick in the face from competition to let you know you are doing it wrong.

1 Not sure what you are saying here. Who was criticizing the system?

2 Do you know what an engine is? Yes? Then you would know that different engines do things differently. Saying "there is one best selling engine, who cares about the others", is like, directly against the whole multiplatform perspective as a whole. Should there just be ps4 then?

I ain't even mad.