MS have options:
1: Backtrack on the always on/DRM
2: Stick with the always on/DRM but trim the price
3: Do neither but get boxes on shelves before PS4 and scoop up panic buyers
If they do nothing AND get beaten by Sony getting boxes on shelves they're in trouble.
What and effectively say "we've made a mistake, sorry guys we won't force this one on you"
yeah right, they'll now spend millions trying to make those none die hard xbox fans buy into this rubbish, lets hope they don't...
If Sony can make the PS3 sell more then 360 and improve PSN so much now that folks don’t mind paying a yearly fee after being late to launch (1 year actually) with a console that hardly anyone could get to grips with, with a online network so flakey it hardly worked, to what we have now.
Then my faith in Sony releasing a console that will eventually have a back catalog of PS3 and PS2 games streamed over the internet and the PSN getting even better, and allow me to do whatever I like with my console and games (within reason I might add) then MS have been a bit deluded and got caught up in their own success, only to now see Sony have not only caught them up, but have actually shown MS up big time.
MS have a bloody nose, Sony are still packing in the punches.. Its not over, but Sony has the high ground on this one. Whatever MS do now, its either belligerent, or backtracking and admitting they were wrong.