Yea for sure. I wonder why they didn't start preparing earlier. I mean this was the longest gen ever. Maybe they just got lazy.
Unlike Sony, when Microsoft builds a new system they pretty much drop all support for the previous system and put all resources into the new console. At least that's how it worked with the original Xbox when the 360 came out. Perhaps they wanted to milk the 360 a bit more (especially since Kinect has sold well and breathed new life into the system sales-wise) before killing it off with a new system. They also probably didn't think Sony was launching this year either and with such a strong system (given their financial trouble).
Note to Microsoft: When your competition is out for blood, it's probably not a good idea to underestimate them.