Sounds exactly what I'd expect from a big company. Politics and contrary agendas are an inevitable part of a large or even medium-sized company.
I'd always suspected that XBLIG was a battle to get greenlit, and the inevitable result is that once the evangelists move into other positions, you're left with an ecosystem full of people that were convinced to let something happen, who don't really support it.
I'd always suspected that XBLIG was a battle to get greenlit, and the inevitable result is that once the evangelists move into other positions, you're left with an ecosystem full of people that were convinced to let something happen, who don't really support it.