The game market is a funny thing.
It constantly doesn't listen to the consumers, and then blames it for their failures. Whenever I think of game Developers as a whole, I think about those 90's coffeehouse 'artists' who feel way too deeply about their genius and how the world is a festering pile of excrement because not one of the seven billion people on this spinning speck of debris gets down on their knees and praises them like we all should have. You know, those 'artists' who were so compelled to have everything their own way. That bit and railed against you when you suggested things you might want to see, or dare I even say, opinions about things you like.
You were lambasted as a Philistine for not whole accepting the work that they gave you because it came from their soul. And since it did, it must have been the purest form of beauty.
Or, flip it. Again in the 90's, the guy who tried to keep up with the trends. The one that was Hip-hop one week, then the next week Skaters became cool so he got a board and those striped shirts that you were issued by law back then. Then the next week, everyone was grunge but he was luckily enough to be able to wear the same jeans but keep his hair messy.
It's such a fractured state of affairs that there's little good to be found in the situation, but a whole lot of bad. We get lost in the shuffle of their business, and it shows. We get lost in their ideas and it shows. Plenty of gamers feel like they were being talked over and the message didn't come close to anything we'd ever wanted. Yes, Xbox, you were a gaming system. You were bought by gamers. If you wanted to appeal to a wider range of people... develop a new system.
Hell, why not just make your own version of tvs! with all the functions you talked about. And have a special connection to show the highest of hi-defs. The Real successor to Xbox 360 that you'll develop for all tvs, but to work especially well with your XTV would still be a great looking system on other tvs, but you could make special connectors that plug into your Xbox Smart TV that just makes it look and play fantastic. Hell, you could do that 3D thing that was a craze... well, yesterday. You get more sales because you could link your damn failing Windows Phone into the New TV that you'd make, or the Xbox Better Name Than What You Came Up With, seamless everything... I just gave you the entertainment market:
A great looking TV to corner the market that you want, the non-gamers. Most non-gamers will take a lot of getting around to because when those few adventurous ones that the Wii brought looked at your thing and thought it was too complicated. This way, with a Smart TV that you'll shoehorn your TV version of Xbox Live or Windows8... you know, all the stuff you basically tried to make the Xbox One to be, you can REACH that market in two ways: It's a great looking tv that we'll make voice activated with this useless Kinect, and your kids would never have a better gaming experience the "How it's supposed to be played AND VIEWED" combo of the XTV and the Xbox. That has hardware to make playing and responses better, visuals that are mind blowing because the hardware will be made to not only work in tandem, but to accelerate the experience like only they can.
Take this dredge back, apologize, make the XTV and the real new Xbox, and we're all square.
Oh, and that always online shit will have to go regardless.