XNA sounds like a leap in the right direction, and then MS listening to the development community is another good step.
THX, MS set out from the beginning saying that they did not expect Xbox to turn profit but rather estabilish a foundation for the future. Xbox 2 was in the plans from the get go so it\'s pretty clear that this was intended as a long-run venture.
I think MS has what it takes, they simply need to build on it.