@Burek what is the point of doing that vs say having a Visa?

I do not mean any harm. I am just curious. I thought you meant like managing your bank account etc.

With the last years of ps3 and 360 Sony proved to have more AND BETTER first party studios.

Microsoft hasn't got Bungie anymore, and now Gears of war isn't developed by Epic Games so they lost the fathers of their best two franchises.

They can only buy "temporary exclusives" like they did on xbox 360 with games like mass effect and Bioshock, or exclusives shared with pc and in a few years they will start losing lots of this exclusives and the people who doesn't own a PS4 will jump from Xbox to PS4 as they did last generation from x360 to ps3.

I think it was a combination of both the DRM and the Kinect bundling/higher price.

News gets around much better these days due to social media and sites like youtube etc. So there really wasn't anything MS could do to limit the damage of the bad PR around X1 at the beginning. Don Matrick made things 10 times worse with his completely ignorant statements.

We also have big personalities on YouTube who have millions of followers who all came out strongly against MS and were generally pro Sony.

I believe the DRM fiasco had a bigger impact on the hardcore gamer. As for the rest of the gamer audience (casuals, kids etc.) they were probably more put off by the high price. Obviously in certain cases the Kinect would have been a selling point.

One area where i think MS did well in all of this is the relatively quick turnaround.

When Sony and Nintendo have been in similar positions they have either waited way too long to react or simply dont react at all.

Convenience. 

Bills - I don't have to wait in line to pay them. I can pay them at midnght, in my  pajamas if I wish to do so. I just scan them, so I don't need to type all the account and routing numbers. So I can't make an error.

I do have a credit card for online shopping, but think about it, I have a phone anyway, so when I go to the store I don't need to have a phone and a wallet. And a card in the wallet...

And all I need is to remember one PIN, instead of multiple PINs for multiple cards.

It is just so much easier to have all your banking needs in one place, at the touch of a fingertip. My biggest hassle now is when I actually need cash, to take a card, go to the ATM, pay cash, carry change. I don't know, maybe convenience spoiled me, but I'm perfectly happy with my setup now.

I think the price drop for the Titanfall bundle proved it's no longer price. It has to be better performing games, more variety in games and a better looking console coupled with the XB1 having forced Kinect (spying issue), and DRM once and for all opened people's eyes to what MS are all about: control/monopoly.

... And the colour blue.

The DRM was the start of the problem, word of mouth follows, things get a little twisted, people also complain the government is spying on them through kinect and the price tag seemed the close it for a lot of people. A few years from now, though, the DRM will be forgotten, hopefully a kinect-less xbox will be out and they'll be able to have good steady sales ( as long as they continue to push a strong library).

The downfall for them is that everyone they converted to a Sony fan will also persaude their friends to get PS4 to play together. 

Main reasons are that Playstation is simply a more popular brand and the price/power differences. What do people expect? That Xbox One would sell better as PS4 even for a higher price without the DRM stuff?

Would be interesting to see how sales would be if Xbox One would cost 400 and PS4 500 bucks. That alone would bring them probably already much closer together. People shouldn't forget that PS3 had a high price and released one year later in America and even around 1.5 years later in Europe so that 360 had an advantage of 2 holiday seasons in Europe which helped over the whole gen.

This time PS4 released at the same time as Xbox and is even cheaper and not more expensive. When the PS3 released, the 360 was 299/399 and PS3 was 599. This time PS4 is 399 and Xbox One 499 (official prices) and people did still expect that Xbox one would sell as much or even more as PS4 without the DRM stuff and even when Xbox One is still not available in many markets (obviously smaller ones for Xbox)?

I think the DRM cost maybe a few 100k sales in the first few months but not more. At least all the people I know in real life who jumped from Xbox to Playstation have the price and power difference as reason and not the DRM.

Forced Kinect and $100 price difference

and poor exclusives

It started out with the DRM. The reactions to that and the way they handled those issues by extremely bad PR made it worse from there on out.
The punches Sony dealt at e3 just helped them in deeper trouble.
(the price is just adding to the bill in this case)
A positive review can win you a customer, a negative will make you lose ten. It's hard coming back from something like that.