Everyone here also thought Move was cooler than Natal/Kinect.
Example: what they may see through AR glasses:
what you may see on TV via Kinect:
I think Augmented Reality potentially stage demos better, might be cheaper to produce, is more social, and has far more long term practical applications in the real world outside of fantasy games.
How to turn AR glasses into VR glasses:
Microsoft spends tons on R&D. Microsoft always has various AR and VR and 3D and wearables and voice technologies that are cooking. Whether they choose to demo or turn them into products is another matter.
And why would they have to buy Oculus for a billion? If they wanted they could just say Xbox One and Windows will work with Oculus Rift and build Oculus Rift support directly into DirectX 12.1.
Please everyone develop for PC and Xbox VR with these simple tools, here's an example of a VR game we developed with Harmonix for PC/Xbox. That's if they even want to do VR and believe it has any real commercial appeal.
MS needs to do something. They can't ride on Titanfall's coattails anymore, and all attention will shift to PS4 now.
The VR
The exclusives
Sony has exclusive marketing for Watch Dogs and Destiny
If MS doesn't do anything, they're going to keep sliding into irrelevance until the new Halo is out (the actual sequel, not a remake).
LOL. THE EXCLUSIVES!!! Can you make me a list?
Morpheus requires the PS4 camera. I think Sony did Microsoft a huge favor. Their main competitor is demonstrating a reason why core consumers should want the camera in the box.
Cortana + Fortaleza are compelling uses for Kinect.
Microsoft got exclusive marketing for CoD, Titanfall, The Division. I think Microsoft is doing pretty well on the exclusives front.