Yeah, anyone who was expecting Sony and MS to cake-walk their way to dominance this gen was kidding themselves that they wouldn't get bad press for SOMETHING that would kill their hype. We're just waiting for Sony's turn, at this point.
You do realize that the mass market aren't early adopters, right? The Wii was the ONLY time that's ever been true, and the Wii U shows that it isn't easily sustainable.
The hardcore are going to be the only ones interested at launch, and if it flounders at launch, the mass market is going to ask why and have PLENTY of evidence to assist them.
As for mass market messaging, here's some sites that MS shouldn't want this story reaching if it wants to control the mass market message:
NBC News
TIME
Huffington Post (twice)
Forbes
The Consumerist
Canada.com (which is part of Postmedia Network, whose articles are printed in multiple newspapers across Canada)
Just to name a few.