I find the premise of the 360 now being a family entertainment device of any sorts quite a twist of the knife to Microsoft's original 360 consumers who put the console where it is today, in spite of the red light error ruining consoles, exorbitant first party accessories, and the cost for online play. Now that Microsoft has tasted the sweet nectar of "casual" markets through the Kinect, the company is most certainly displaying its interests geared towards that specefic market. As an owner of both a 360 and PS3, I believe that Microsoft is leaving the 360 to just float along for those of us not interested in using the console for Kinect, as a DVD player, or Facebook/ESPN/Netflix/Function that our computers can already do for free. Where is the past focus on maintaining a strong first party lineup of games whose exclusivity to the 360 made it a desirable console? I mention my PS3 ownership for one primary reason: I was sick of where the 360 has been heading and the lack of any effort to expand upon its library beyond Halo, Gears of War, Fable, and Mass Effect 1 and 2, causing me to seek an alternative system that was at least moving forward in a direction focused on games and that respective market.
As inane of a claim that the 360 is a family console now, there is some truth to the statement that is the made evident by disregard for continuing a strong gaming function for the Xbox in favor of making your kid sister jump up and down to pet the imaginary animal that shows up on the television.
From my own experience, I find the DVD playback abhorrent on the 360 and the other features touted for the device are superfluous given my access to a computer or even a PS3 just for competition's sake. If anything, my family is constantly using the PS3 just for the bluray function. No matter the advancements made for the multimedia capabilities of these consoles, is it really going to be more desirable than a plain old computer? I feel that once a console transcends into a true "family device" then the appropriate compromises on content will adversely impact those of us interested in one main thing: The games.