If Microsoft is serious about making it big in the games industry, they need to take a step back from "developers, developers, developers" and enter the world of "designers, designers, designers".
Branding sucks.
Marketing sucks.
User interface sucks.
For some reason, they cannot make something that is functional while also being aesthetically pleasing. Simple, beautiful designs work. Look at hardware that has reached the mass market, like the PlayStation, the DS and the Wii. Look at stores like Ikea and Muji, where furniture is functional, cheap and beautifully simple. Keep the logos subtle, and don't push them in people's faces all the time.
User interfaces are a no brainer - take people from different target groups and sit them down and ask them to perform a group of tasks using your interface. Reduce the clutter, organise your content better and make it cleaner. 360 UI is confused, lacks consistency from blade to blade, and is rather gaudy.
Just spend a little more money in this area and everything could be wonderful.
