True, but most Wii owners aren't paying $50/yr for MP gaming nor are they paying $60/game, nor are they buying 3rd party software at the same clip as ps360 owners, nor are they buying as much software in total as ps360 owners.
Perhaps the bean counters thought the Wii method was the way to go, but I hope they realized they put their cash cow in jeopardy in the process.
Imo that is pushing there are more critical factors imo for masses to adopt the product, the first hat spawn in my mind is price. Price depend on BOM for the system by self and also peripheral included with the system.
If they include Kinect in every SKU, the impact on price is going to be worse than the xx% pixels they are not going to render (vs the competition). This whole gen the xbox was significantly cheaper, lot of people got a silver account, but MSFT does not disclose the amount of those account that are connected / usage, they no longer give the amount of gold subscribers.
Why do I get here? Because it impacts price, the TCO of the system. It safe to say that lot of people (/ the majority) bought the 360 without planning to spend extra bucks on a subsctiption, so the PS3 and the 360 were more comparable in price (for an online player it is different, whereas the basic price is lower, the TCO for owning a 360 get higher than the PS3 one pretty fast).
Now it seems that the xbox should be cheaper to produce (but not as much as I were expecting, sadly...), the main difference being RAM type, but not by a significant amount. Say MSFT subsidizes more than Sony, the difference could be 50$, not a game changer for a buyer imo.
Now if Kinect is mandatory, they are likely to be at a price disadvantage, and it should be the same with perfs. Not really sexy, I agree. Thought for years (and still now) I think that lot of people think the ps3 is significantly more powerful so whereas it is mostly a wash.
Then there is the functionality available without subscription, here to I could see MSFT pushing too hard too.
Overall the issue I have are more on the business side than with the product by self, actually for the sake of avoiding direct comparison, and imo not being in the same price bracket should do the trick, I would have preferred an evven more cut down system ( I described in one post, go with a custom(ized) VLIW4 GPU as the overhead for GCN is 50% more transistors for the same amount of SIMD as vliw4/vliw5 design (and the VLIW4 are quiet efficient already), may be cut tthe main bus to 192 bit, etc.). Now I' m really iffy about their positioning.
Their chip could in the same ballpark as the one Sony uses, Sony spends more on RAM, but the difference is not enough to set the system apart. Let see how it turns, with all I hear I start to hope the steam pulls something interesting, either way I more and more happy with sticking to windows gaming (/steam).