I wonder what is going on in the Microsoft HQ right now? All of the MBA's who thought they knew how their audience thinks and what they want will probably bang their head against the wall.
Know your audience before you try being a big boy. This was a blatant fail, maybe Microsoft is clever enough to revoke all of those silly restrictions they added to the Xbox One, but chances are low that a stubborn giant who never really innovated, will be the smarter one and say "Wow, we made a mistake. Here is our new offer in favor of our customers, not the big, silly media companies."
I'm actually happy, fuck Microsoft.