I\'m not going to get into the whole MS reputation topic, that we always get in, when we speak of the XBox.
As for the specifications being lowered. In my opinion, MS always knew they couldn\'t live up to the ones previous set. It was a simple way to draw some attenion to the Xbox. They can\'t draw attenion by going "Its slightly more powerful then the PS2!". Now can they? No. So, what do you do in that situation? You lie, in typical buisness fashion. Now they\'ve done that, so they have one last resort to pull the Xbox out of the gutter. That is games. Come E3, they better have a very impressive booth, otherwise the Xbox will be stillborn. With less then a year to the tenative release , they still haven\'t shown us the actual console or the controller. Gamers (casual and \'hardcore) need to see these things, including REAL TIME game footage.
On the note of REAL TIME game footage.. MS doesn\'t have a franchise to fall back on, like Nintendo does. Nintendo can show up at E3 with demos of Mario and Zelda, and that will attract a HUGE booth and excitment in itself. MS doesn\'t have this option. So, they better have some compelling games that look quite a bit better then what the current PS2 market will be. Otherwise, gamers aren\'t going to find a reason to buy the system.
I don\'t care how much money and hype MS put out. They cannot sell a noteable amount of Xbox on those two factors alone. Just like they can\'t sell a noteable amount of Xboxs on ports of PS2 games (i.e, Silent Hill 2 MGS2).