@TheRealBigRich: While I definitely agree with everything you said I still think a price drop is only a temporary solution, not a fix to the actual problem. Games and features should be the #1 focus of MS right now. I've bought consoles in the past due to finally having a game library that I liked. Also, MS biggest supporter right now should be their current XB1 consumer base and their word of mouth. I've asked all my friends that have one how they like it and they all said it wasn't worth it (strictly in my friend group, others may have had different responses).
With the 360 I think what helped them the most was the 1 year head start they had and the great games they had at launch. I got a 360 a few weeks after the launch with Fight Night Round 3, PGR 3 and NFS:MS (2005) as some of my first games, oh my God did I have a blast. Console was GREAT from launch. It was the first time HD gaming was available on a console and it really blew people away when they tried it including all of my friends (hence word of mouth again). I'm sure knowing how expensive the PS3 was going to be at launch helped some people get the 360 but I think the great launch games and head start helped it over the price the most.
Also, to everyone complaining about specs and price, PS2 specs were garbage compared to the original Xbox...still didn't stop the PS2 domination. Why? Because PS2 had games that people wanted to play. PS2 also had that head start which helped with the install base.
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