MS launched a console with a historic failure rate and slapped a 1 billion dollar band-aid on it, has had non-competitive pricing on their memory cards and HDDs (dual meaning since they locked out 3rd party solutions), had a terribly overpriced wireless solution, set the record for the longest console intro without a price drop (before the Wii broke it), introduced an SKU mid-gen that actually drove the price UP, allegedly alienated MMO developers with draconian revenue-sharing demands, irked numerous PC devs with their insistence on screening post-launch content, sent 3 consecutive AAA Rare titles to die by releasing them in the most crowded month of the year with minimal advertising, they murdered and dismembered the devs behind some of their most beloved PC and console franchises, and overpriced their new casual HW peripheral by at least $50.
It's a miracle that they've been this successful thus far, and it almost seems like luck.
If I have one consistent criticism of MS it's that the platform doesn't seem to have a clear vision - shit just seems to be thrown about at random. While I do think that Kinect will be at least a decent success, I don't think MS 'gets' why that is...which is why they have day 1 DLC on one of the launch games.