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Well that, a hundred dollars of useless hardware, weaker gpu, the combination of which seemed to lead to the perception of the One being a living room media box and the PS4 being a gaming machine. Seems that was Microsofts goal at the time, they misjudged their audience about as bad as they possibly could have.
Not to mention the prerelease fiasco around physical discs being locked to consoles and what not. MS did a lot of dumb to earn their current position.
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