Earlier quoted context omitted.
> This is probably a big win for PlayStation’s marketing team. I don't have any current Gen console (nor have I played one) but as a long-time tech market "interested observer" my understanding is that XBox had a bit less raw power last Gen and tried correcting this Gen and succeeded in having a bit more raw power than PS5. However, it apparently didn't matter to the market. So it seems to be another example like Bet…
Part of the issue is Xbox segmented the market with the less powerful Series S and put constraints on releases needing to have feature parity between the two, quite a few devs have had issues with. It delayed Baldur’s Gate 3 for months until MS waived off the split screen co-op. Seems bizarre to chase power at hard and then make it harder for your devs to develop to it. https://www.techradar.com/gaming/is-the-xbox-se…
* Going all-in on bundling the Kinect, a very costly depth camera interface peripheral, with every XBox.
* Committing to making XBox an "all-in-one entertainment system" by building in an expensive HDMI input capability to enable being an electronic program guide, digital video recorder, Blu-ray disc player, streaming TV service and music service. The Kinect camera peripheral also had a built-in IR blaster to control all your other living room devices.
* Announcing pervasive DRM that would tie game discs to the user's account, prevent reselling or lending game discs.
* Aggressively pre-announcing no backward compatibility with previous XBox games. A senior XBox exec apparently told the media (on the record), "If you're backwards compatible, you're backward."
While the last two mistakes were walked back before the console even shipped, building in & bundling costly hardware couldn't be walked back. Nor could the significant investment in developing operating system and application software to support electronic program guide, IR control, video streaming and recording. These large hardware and software investments certainly came at the cost of investing as much in hardware and software to better render games, play games and support game development. You can kind of understand why MSFT thought each of these things would be good for MSFT strategically, but they were all tone deaf in terms of what their market wanted and fatal distractions from the main business of being a good game console.
I hope someday a definitive case study will be written giving insight into how otherwise smart, experienced executives can make so many catastrophic strategic errors over such a long period of time.