MS's biggest mistake this gen: Lack of first party studios, hence the lack of exclusives

"If you could have one do-over, what would it be?" That's the question asked to Microsoft CEO Steve Ballmer during his address at the executive club in Chicago. Mr. Ballmer then addressed the fact that there is never "just one do-over" but there is one mistake they made that was bigger than them all: "I would probably say I would start sooner on search." The crowd went dead silent. No noise, you could hear a pin drop. Ballmer had just acknowledged that his Company's nemesis, Google, had beaten them to the punch; it was almost like accepting defeat. But there's another BIG mistake that Microsoft made in their Xbox/Zune division, one that's seriously hurting their console while Sony's PS3 seems to be set for the distant future, and it's not RROD.