Microsoft's lack of foresight is troubling. It's becoming more and more obvious the experiment known as XNA has failed. The poor sales figures of Community Games coupled with bitterness over the existing revenue sharing structure have left a bad taste in the mouths of bold entrepreneurs hoping to get fed on fat profits.
Strangely, it was Sony who responded to the wave of unhappiness... by revealing plans to match development costs for certain games in return for PSN exclusivity. Microsoft can do well to pay attention and take a page out of Sony's Pub Fund playbook if they wish to salvage what good graces they have left in the XNA brand.