I agree with most of what you said, but I don't think this decision was made by the xbox division. You think the dudes who make games and are in the culture weren't in meetings just facepalming at the idea? I'd bet my car that they were. I bet they kept saying it left and right, but got overruled by the big wigs.
It's times like this that I appreciate Nintendo's arrogance/stubbornness about certain shyt. They ain't trying to be an all everything system. Even since trading cards they've been all about games. WiiU might be meh, but it's the first time since virtua boy that they dropped a brick and they still might recover when the classics come out.
I agree and think so too. Ballmer is a clown. They are making the XBox the sacrificial lamb for their bullshyt. Truth be told, I truly belive the Xbox was what MS planned all along to use as a means to "take over the living room". It's like their plan finally coming together, but the customers aint having it. Too bad that shyt changed.
You need younger execs in these companies more in touch with today's environment . These baby boomers need to go sit down somewhere.