Fries said: "They need better exclusive games than PS4. 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."
In the area of VR however, Fries warned that Microsoft should look at the collapse of 3D demand before taking the VR route to compete with the PS4. Facebook's recent $2 billion acquisition of Oculus Rift and Sony's own Project Morpheus show that VR is in the pipeline in any event, and Microsoft is known to be developing a VR system of its own, and also has reportedly spent around $150 million on wearable technology assets.
New Xbox head Phil Spencer said he thinks VR is not a fad while responding to a question about Fries' comments on Twitter.
@GeekAesthetics I don't believe VR is a fad. More exclusives makes sense. F2P will be on XBOX One, works better as IB grows. Ed's smart.
-- Phil Spencer (@XboxP3) April 3, 2014