IGN reported that Microsoft is finally surrendering and admitting their numbers aren't as hot as Sony's. I'm sorry, but this is crap.
You think Microsoft cares about sales in units? What they care about is sustainable revenue; they take a loss on each console sale! What they've done is setup a system where Live payments and game purchases earn them their revenue, pushing their numbers into the black.
Check out Microsoft's financials. Even thought they have sold only 2 million consoles in Q3 this year, last quarter they sold 7.4 million!
IGN also reported that they "finally accepted that the market doesn't want Kinect". Bull crap. Someone who knows nothing about business is obviously writing this... oh wait.. it's Colin Moriarty, the hated writer who threw a temper tantrum when people wanted BioWare to change the Mass Effect 3 ending.
Microsoft isn't ditching Kinect! They're trying to sell cheaper consoles because they have to compete with Nintendo as they both enter the Chinese market! Microsoft has done market research and determined their pricing is too high right now, so they want to lower it. That's it.
Now if IGN could actually interpret the news correctly, I'd appreciate it.
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