In an AMA on Yabbly, Fries highlighted the importance of compelling exclusive software, a better relationship with independent developers, and several other rather obvious ways to win over gamers.
"They need better exclusive games than PS4," he explained. "They need to be more open to indie developers. They need to adopt free to play gaming more aggressively. They need to continue to move Xbox Live forward as the leading online service. They need to show people why they included the new Kinect on every machine by demonstrating a compelling use for it."
I think those last two points are the real kickers. Xbox Live was the driving force behind Xbox 360's success, and unless Microsoft steps up its game this time around to prove why it's a better service than PlayStation Network, its going face an even steeper uphill battle.
As far as Kinect is goes, I think the vast majority of core gamers are still pessimistically waiting to be won over by that controversial piece of hardware.