Gaming is key
i think another big mistake Microsoft is making is moving towards running Xbox on Windows. I already have a PC on which I play games - why do I want an Xbox in addition to my PC? Answer: I don't. And I especially don't want to have to tie a Microsoft Live account to my Xbox just to play. I don't buy the games to subscribe to Microsoft's overbearing overseers - I buy the games to play and have fun. Put too many barriers in the way, and I will stop using your products. Period.
Microsoft - You are following the path of IBM. Remember the business lesson of lock-in: It doesn't work. If you are unwilling to compete on product merit, get out of the business now.