Well, Microsoft is backpedaling like a bad cornerback.
No more always-on requirements for XBox One.
Used game restrictions taken down.
So why are they still fucked?
Not only because they have the spying abilities of the new Kinect, but, now, they have to not only change the architecture around how the One is going to work, but also confront the reality that their entire economic model for the XBox One is now done, at least vis-a-vis games.
I fully expect, either after the One or during, that Microsoft will fully divorce from the gaming industry.