The first Xbox was just a stake in the ground, a declaration of micrsofts intention to play in a field that was already quite competitive and saturated. It won a few people over but it didn't win the market. Then they released the 360 and the main consoles in the market are now in a 3 way battle, instead of a two way one. Microsoft are, I hope, playing a long game that recognizes that people don't stay with their current phone forever.