As for the NOT XB1 system, this is not a VS thread and since I shan't even make a joke about going OT I shall not be tempted to do so!!
Well I put a smiley in my posts, jokes are ot but I guess sometime
I dunno. I think you have to look at total cost of development and sale. Theres no way to know how much MS spent versus Sony on the development of their systems. However, what is telling is that MS is spending tons more effort convincing buyers and maybe developers thats their design choices were worthwhile. Nevermind silly things like releasing a system designed around Sea Islands architecture AFTER the Volcanic Islands discrete parts will become available.
To me it looks like MSFT spend more (even putting kinect aside) in R&D, with more in house efforts.
Now wrt convincing buyers, their PR strategy was a disaster, I think nobody can question that.
They are also facing a deficit of paper FLOPS and well actually whereas Sony I would bet spend less... actually my opinon on the matter is OT. I would add the system is expensive, and whereas the services seems to be top notch in US I'm not sure the same can be said in the other big regions.
Now for the devs, I don't think MSFT has much to do, enthusiasts are going to buy it in sane quantity supporting the console is worthy, in the future like everybody they will adapt to how the things go.
I won't go further nothing is technical about this, pretty much business and marketing.
Obviously they knew the hw roadmap and they missed on nearly every gamble this time around
Well that is a bit unfair, which gamble did they missed? The cost of the GDDR5 is still unknown, how it will affect price reduction too.
MSFT has a lot of room to adapt, I think speaking of Kinect less SKU this early is too anticipated, close to FUD actually, though if they have no other choice than to compete on price only they could remove it.
Durango price should go down pretty well.
Sony "gamble" has yet to prove successful in the long run, acting like MSFT is sort of done for is way too anticipated and it disregards its financial capacity. I don't see in the future though I think is too early to tell one way or another.