As a 360 user those days I saw some of the writing on the wall. Xbox E3 events focused hard on American features which turned the Xbox to a smart TV box. Aside from games we gained nothing for most of Europe.
With the upcoming streaming revolution all you really needed was a Netflix app. Not the dozens of TV features made for NA based users. None of these features tied customers in and as soon as PS4 released people just jumped ship. Games rarely worked throughout generations anyway.
So in summary: Xbox Live won over vast numbers of gamers to the new multiplayer console era, but in my geographic location people just jumped back to Playstation because PS Online gained feature parity.