Do you REALLY need me to spell it out for you? If you make a product, and it's being outsold by it's direct competitor by a margin of TWO TO ONE, you are failing!
If, after lowering the price, it is STILL getting outsold over 2:1 and you can't even overtake your competitor in your HOME MARKET, you are failing!
It's not just about selling a few million consoles, bub. It's about seeding the market enough that in the NEXT 5 YEARS you have the momentum to GROW your sales!
With the Xbox DECLINING in sales globally, and failing to close the gap with Sony even in the US, more customers will choose the box that their friends already own, DECREASING future sales for the Xbox and INCREASING them for the PS4! Additionally, more developers will target the PS4 and ignore the Xbox because they have MORE POTENTIAL CUSTOMERS on the PS4. And that also makes it MORE EXPENSIVE if Microsoft want's to buy exclusivity, either timed or not.
Now, you can stick your head in the sand all you want. It's not going to change the reality of what is happening this gen. As I said before, it's all over but the crying.