Unforced error...
Shot themselves in the foot...
All similar sayings...
Good on MS for reversing it, bringing back 12 month Xbox Live (they havent sold it since last summer) and having Xbox Live match PSN feature set with F2P actually being F2P.
The backlash was coordinated and unforgiving. The PR was so bad, they released an update at midnight eastern time. Good on the gaming media for finally doing something right.
All that said, MS showed their hand. I hope people realize this.