They had a meeting to prioritize the development of the XBOX One.
Someone in the room brought up the PS4 and it's focus on "Gamers only" and argued that if Microsoft wants to compete then it needs to show it's gamers that gaming is their priority as well.
Everyone bought the argument.
sounds plausible. they probably already have numbers on exactly how many OTA usb antenna are in use and their myopic projections concluded that the user base wasn't there to justify development.... but here's the thing about the telemetry: very few bought the usb antenna by itself (except for those who took them for their word in anticipation of the OTA DVR) because every TV set already has a tv tuner built in. it's not compelling by itself... BUT as a complete package that included free guide, dvr and tuner??? that would have sold like hot-cakes for everyone under 30. they could've worked out a deal with hulu to satiate the cable itch + OTA dvr all integrated into one-guide. they screwed the pooch on this.
besides this OTA dvr fiasco, there is no forward vision with the xbox team. with the promises of an all-in-one media/gaming box, i would think by now, they would have opened up the APIs to get developers making living room and home automation apps (not to mention the hdmi drm apis figuerres brought up... so many APIs lacking). they have the equivalent of a low-power server running in millions of households and they don't even want to allow us to see what we could do with it. there are entire classes of apps that haven't even been thought up yet... it looks like Cortana is coming, but imagine if we had the APIs to make living room apps with Cortana... "Cortana > Temperature > 72", "Cortana > Camera > Front Porch > On", "Cortana > Lighting > Living Room > 50%", "Cortana > Apps > Hail Uber", "Cortana > Music > My Playlist", "Cortana > Weather Today", "Cortana > Message > Timmy > Come home its dinner time", "Cortana > Set Reminder > 5:00PM Next Tuesday > Dentist Appointment"... or any of those scenarios with the controller sans Cortana/Kinect.