orcishgamer: I don't know if anyone knew at the beginning of this generation (and I truly suspect Sony didn't, for sure) but online is what has sold this generation of consoles, period, end of story. I doubt that will disappear from the next generation, instead I expect to see phone integration along with some other neat offerings (some of which will actually make sense).
revial: Definitely. I know it's fun to make fun of Xbox Live, but it is the reason why Xbox does so well, and why I never play my PS3 or buy games for it unless it is an exclusive (hardly exists these days) and something I really want to play (this combination has only occurred twice in three years).
Frankly, it's mind boggling how Microsoft got the Xbox down but has failed so bad in other areas aimed at the consumer market. Whether this is an indication that they got lucky, just like the video you linked said Sony got lucky, and aren't actually any good at things, or what, I don't know.
MS didn't get lucky so much as they've been doggedly trying to get a PC-like device as the central living room entertainment device for over a decade now. They pour crap-tons of money into R&D for all divisions. Hell, their payroll of Linux specialists probably exceeds the GDP of some countries and they hate Linux with a passion (rather they hate the spirit that drives it, but I digress).
So, after sinking untold dollars into it they have finally pretty much invented a market that no one knew existed. They turned US college frat boys into hardcore Madden and Halo players. They launched an indie market which is practically free to launch games on (ever wonder why consoles never had indies or small titles before? Because the Japanese console makers demanded 7 USD or more per game royalties). They launched an Arcade market which was perfect for monetizing side projects at big studios.
Kin was an utter, fucking failure, and they paid for it. Windows Phone 7 won't be, want to know why? Because they will doggedly pursue until they have it. They're going to move the entire Zune ecosystem onto it (my prediction, nothing official, afaik).
People make fun of MS, and I can't say I've been a fan of everything they've done (after all, I have a lot of Linux devices and only a handful of Windows devices), but one thing they are good at: learning from their mistakes. Never underestimate MS after you've beat the everliving hell out of them, they will come back knowing how to counter every trick you used previously.
And... I'm drunk, thanks for reading... or sorry or something.