XB1 isn't selling as well as the PS4 but its still doing quite well IMO.
Hardly. The Xbox One is doing fantastic sales wise and has yet the launch in several key territories.
PS4 sales keep accelerating to meet supply, and they are aggressively launching in more countries. XB1 sales have fallen off rapidly, there is stock on shelves in most places. Unless MS start releasing in other territories soon the perception of failure for the XB1 will grow, despite their own media spin.
Stuff like this:
Microsoft Xbox One is selling over twice as fast as its predecessor, the Xbox 360.
This is spin! The XB1 was coming off the success of the 360, the 360 off the not so successful original. The 360 came only 4 years after the original, the XB1 had 8 years of pent up demand. The 360 was pretty supply constrained and sold out... there is no doubt it would have sold better if it was available. MS have made he XB1 more available in the US.
Yes - it has been a successful launch for them, but not as successful as they are trying to make out. And the sales since new year have been underwhelming.
If MS "stay the course" it is entirely possible that the PS4 will have double the sales of the XB1 by the time E3 rolls round. MS need to avoid that like the plague! Public and shareholder perception will be rattled and it may start going the way of the Wii U.
If Xbox One is making profits to Microsoft (although it is quite minor comparing to other MS business), then I don't think MS will take an emergency action until Titanfall launches in the market.
This...
MS are going to weather the storm until April when they see the impact of Titanfall. I think they will be disappointed - they are falling behind too fast and 360 availability will keep most of their core audience happy.
Then emergency measures will kick in... in late April/early May I predict
price parity with PS4 with bundled Titanfall & 3 months XBox Live at the very least.
They have to do damage repair before E3... as allowing your competitor to crow a 2:1 worldwide sales advantage at that event is a death knell. With a price dropped bundle they can at least talk about a major uptick in sales and give your audience some hope for the future.
Sony have just done everything right... they deserve this success.