The truly crazy part is that this is in the US. Others have pointed this out, but boy, I don't think you can put too fine a point on that. The US was supposed to be MS territory, even with the difference in price, the name recognition is so powerful here. To think that Sony is spread out in so many different countries, so many more than MS, and is dominating roundly in those places too. It's crazy.
Obviously this is news to most of us, but I have to imagine that MS employees have been aware for a while, and there must have been some fires burning around the campus. Very curious to see what this will mean. Obviously they've been parroting this "tiftanfall, titanfall, titanfall" line for the several months, but if that doesn't hit, and hit hard... Some changes definitely have to be on the way.
I welcome a desperate MS. Price cuts, investment in internal studios, and an offering of innovative, rights expanding digital decisions could be a huge PR boon, and they've got an infrastructure to make it happen. We'll see whether or not they can pivot, or if they'll just keep using their current awful PR to drive the device into the ground.