I am happy about this. I bought the PS4 at launch and previously owned 2 PS3's and a 360 last gen.
2 PS3's because my wife liked to play certain online games co-op with me.
This gen, I'm looking to purchase another console...but will not be getting 3 as I still have 1 PS3 which I'm keeping for some games, playing music etc.
With Kinect, there was no way MS could get me to buy it without reducing the price to a point where I wasn't paying 1p for Kinect.
So taking it out means it is now in direct competition with the PS4 to be my households 2nd current gen machine.
The problem I see MS having for me personally is games. MS big exclusives are very poor last time around IMO. Halo, Gears, Forza, Fable - I didn't like any of them.
Not to say I particularly loved the PS3 ones either, but I at least liked some of them.
£300 or less and I'd be seriously considering an Xbox One. But, I think they need to show some good exclusives at E3. If they can't offer those, then It makes sense to buy a 2nd PS4 to play co-op again. Games like Dying Light, The Division, Diablo 3 are ones my wife would join me on and while some offer split/same screen, having your own screen is always better.
That and the fact that every single one of my mates have a PS4. The only few who have Xbox Ones, have both. So it's never going to make sense for me to own an Xbox One unless they have exclusives I NEED to play. I hope they do though...
It's a little concerning MS have ditched their vision. I know I never wanted Kinect anyway, but there is a worry that they have changed so much from the original vision that the console just isn't up to scratch.
E3 has now just been made more important to me - to see what Sony and MS have on the way.