Kinect is successful and an interesting product, but they've had a hard time producing genuinely interesting or high quality Kinect games, either first or third party. The ones that are successful tend to actually make rather minimal use of the technology, or use it in odd ways. For a couple examples, IIRC Dance Central isn't able to use the actual skeletal tracking technology, and Double Fine's Kinect games likewise take a different approach that doesn't use the skeletal tracking. Most of the games shipping labelled as 'Better with Kinect' use it as a glorified microphone, which is kind of depressing. At this point there is also a general consensus that the Kinect camera's accuracy is too low for many serious game uses and that the field of view hampers its use in many homes. In their defense, it's rumored that they have addressed this with the next revision of the hardware.
My point is more regarding things like the dashboard updates - the XBox 360 dashboard slowly turned into a glorified billboard covered in ads that has incidental features tacked onto it. They've had consistent performance problems with their system software that have never really been addressed (though thankfully they've made slight improvements here and there) - at this point people who have to interact with it on a regular basis, like journalists, are barely able to contain their hatred for the user interface.
