I should probably rephrase to say that they shouldn't be so focused on exclusive games.

Sony's service would be a major succes only because people baught the console for games and then they found this server which is amazing. It's why gaming should be a priority it will sell consoles and then whatever is on the console in terms of services will either be a failure or a succes.

P.S: What does the wii have to do in all of this we are discussing services sich as PS+, Ea acces, PS Now and so on and not what the console did in terms of innoviation on how to play games.

Microsoft would probably have an easier time just matching sony's new ideas than they would building the kind of first party studio system that sony has. Sony has nurtured some of those relationships for over a decade, I just don't envision MS competing on that front. Its not even a situation like last gen where atleast Sony developers could say "this could only be done on PS3". If an MS exclusive developer says something like that they will be laughed at. 

They don't need to come out with their own tv either. PS TV's can be purchased built in to Sony Tv's but they can also be purchased as seperate streaming boxes. I don't necessarily think MS needs to only try to put out something to compete with Sony's upcoming offerings. They just need to show something (don't know what they could be) that isn't just another exclusive game, they need more selling points than that. Now that kinect has been left to fend for itself and tv integration has proven useless, they need to both compete with sony's offerings and also diffrentiate themselves.

I'm not saying that gaming shouldn't be the priority... but it can't be the only thing you focus on. MS messed up when they sidelined gaming in favor of tv and sports but they can't now just focus on games and expect the tides to change. Keep in mind MS has been game focused since last year and it hasn't done them much good. They pretty much made the shift to focusing on games since last year and they are still getting their rears handed to them by sony. They had a better exclusives line up than sony last year and this year as well but it is not enough. Titanfall was a very well received game, so its not like they simply didn't have good exclusives. They should absolutely continue trying to build a good library of exclusives, but they can't afford to not invest in other things.

I only brought up the wii because I feel it is a console that succeeded not because it had the best games but because it offered something new and exciting (for some people). 

Well this just shows that first impressions count. If microsoft just announced eerything like Sony we could actually be seeing it beat the Ps4 due to it having better exclusives.

RIght...I get that Microsoft needs to incorporate new services into their XB1.  However, a consumer is not going to be standing next to a PS4 and XB1 in the store and say to themselves:  "I am going with the PS4 because it has PS Now for me to instantly start renting games on my new console".  There is absolutely no consumer that buys a new console with the intent of renting games right out of the box.

Microsoft is not going to be investing into virtual reality this generation as they have completely dropped support for the Kinect 2.0.  My reasonings behind this stems from Microsoft making a Kinectless bundle as well as not mentioning a single game or even the word "Kinect" in either their E3 or Gamescom 2014 conferences.  Consumers have also proven that the Kinect 2.0 is not as accurate as they hoped it would be.  On top of that, Microsoft would also have to heavily invest more money into their controller to have motion detection like Sony has with theirs.  Playstation Move has been proven to be the most precise motion controller out there against the competition.  Making a virtual reality headset for the XB1 would be a step backwards in my opinion.  

I believe Microsoft needs to focus on what they want to do with the XBOX brand moving forward.  They screwed up by advertising their gaming console as an all in one, hence the name.  Now Microsoft is trying to refocus their gaming console as the console to play the best games.  What you are suggesting is going back to what made them fail.  By branching out into new services or hardware (virtual reality) will make the XBOX brand lose focus once again.  Providing new services that match the PS4, without the 1st party studios, will not convince consumers to buy your console.  THAT is why they need 1st party games first and foremost.

So focusing on the market you're competing in is a bad thing? I don't even agree that they're focusing on gaming too much. MS should put more focus on the Windows products than gaming (I mean that is how they became the multi-billion dollar company they are today) Also they should invest more into potential future technology (instead of being a follow the leader company that they are today).

PS Now on its own probably won't be a huge selling point... but there is no reason to believe that Sony won't continue to have an awesome lineup of exclusives going forward, so the scenario looks more like this: "The playstation has great exclusives AND it has ps now AND it has morpheus AND it has game sharing etc... Xbox has great exclusives AND...... the ability to browse my tv guide from console? That is where the problem is. Sony is almost guaranteed to have some really great exclusives, if not then maybe MS could win by just hammering out exclusives, but Sony will have their own awesome lineup so if MS intends to compete they need to keep up.

As an example, last gen when I bought a PS3 I already had an Xbox 360. One of the reasons I was able to justify my purchase was because PS3 was also a bluray player. On its own that would not have been a big selling point but it helped tip the scales for me. That is the kind of thing consumers will be doing when choosing consoles, and with such a huge early lead in sony's favor, xbox may soon need to also justify itself as a secondary console for a lot of gamers, the same way I did with PS3 last gen.

You are correct in your statement regarding first party exclusives on the PS4.  An indication of this was in Sony's Gamescom 2014 conference.  All of the games that they showcased during that conference were games that are coming out in the next 6 months (as specifically stated by Sony represtentatives themselves).  That 6 month span includes August 2014 - February 2015.  One can only begin to imagine the unannounced games that they have in store for E3 2015 as they did with LBP3 for E3 2014.  Their reasoning behind this is to yet again, create that WOW factor that was captured during E3 2013.  It appears that Microsoft has shown all of their cards in terms of exclusive games up to this point.  

So yes, you are right in the fact that Microsoft has an uphill battle in terms of competing with 1st party exclusive games.  As stated in my previous post, it would be benefical for Microsoft to include new services into their console.   Game sharing is probably the only thing that they could incorporate into the XB1 at this current moment.  Again, a virtual reality headset would be a nice addition to the XB1 console; however, Sony built their entire console around this new piece of hardware.  Therefore, I highly doubt that Microsoft will be even able to tap into the virtual reality market this generation, which still hasn't proven to be profitable in the first place.  

I believe what you are failing to realize is that games sell gaming consoles.  The sole purpose of these additional services/pieces of hardware is to extend the life of the console.  I understand that having these services when purchasing a console is an added bonus. In my opinion most consumers purchase a new gaming console to either play games with their friends, or to play a new exclusive game.  

The one HUGE difference, apart from games, between the XB1 and the PS4 is the Kinect 2.0.  It is this same huge difference that Microsoft seems to have completely abandoned.  Making a Kinectless XB1 bundle has already pissed off game developers who intended on releasing a Kinect only game in the future.  Microsoft has also came out with empty promises that were even seen on the original Kinect (Project Milo or scanning skateboards into the game as examples of these empty promises).  

There are a lot of things the Microsfot needs to do right now.  The first step is to regain trust back in the game developers to make exclusive games for the XB1.  This in turn will regain trust of the consumers and provide a better future for the XBOX brand.  Failure to provide these new 1st party exclusives will lead to their downfall in my honest opinion.  It has already begun.  The real question is...can they stop the bleeding?

They need more first party exclusives and less third party ones.