by dominating Sony and Nintendo in sales this past year? That's a pretty good indication that they know what they're doing...just saying.
When did they dominate Sony in sales this past year? If anything, the PS3's been gaining ground and Nintendo... can't really compare them to Nintendo as Nintendo don't have competition. Worldwide sales are only marginally ahead for the 360 in comparison to the PS3. Only with the Kinect is Microsoft really excelling with sales, and the Kinect... isn't exactly what I would call a good thing. Of course opinions may vary, but just because the Wii and Kinect prove motion-based gaming is lucrative doesn't prove that Microsoft know what they're doing. Now, in the PS1 and PS2 era, Sony "dominated" the market... by far.
Going by your logic, Sony must really know what they're doing, right? Nintendo did the same with the SNES era. Do they really know what they're doing? Microsoft, on the other hand, have never really dominated a console generation. They had an edge at the beginning of this console generation, but this past year, they haven't "dominated" anyone. They have no first-party developers, for one thing, and the 360 hasn't proven any real technical advantages over the PS3 meanwhile Microsoft demand yearly Live payments for even basic services (such as Netflix streaming) and their console doesn't really feature anything indicative of grandeur in relation to, again, Sony.
What Microsoft's lead in the U.S. has proven is... not really anything other than an advantage for the platform on its home turf whereas the PS3 does the same in Japan, its home turf, and the two are roughly matched with a slight lead for the PS3 in Europe. Success doesn't mean a company "knows what they're doing" (not even in sales, but if so, likely only in sales as clearly, some people are dissatisfied with the purported GPU choice and unless one is a Halo, Gears of War, or Forza diehard, there's little in the manner of exclusive games provided by Microsoft's platform) and Microsoft have never achieved the success Sony or even Nintendo have in the past at any stage, the Wii far outsold both consoles total, and Microsoft's only unique offering is Kinect... something I'm sure many see as a gimmick much as they view the Wii's selling factor.
Microsoft haven't proven anything and what's good financially for a business is also quite separate from what's good for the consumer. Again, I reference the Wii... an abysmally outdated amalgamation of, what, 2000 era hardware that is, subjectively (from my point of view), based all around a gimmick and features little of value aside from a few first-party titles. The Wii has outsold both the 360 and the PS3, individually, this console generation. Does that prove Nintendo "know what they're doing"? Separate console generations are separate console generations with many variables (many of which companies have to take risks on estimating) and subjective attitudes and values applied to each facet of each individual console generation. Marginally, or even majorly (360's is more marginal, if there at all), advantageous situations (especially just those initially or even long-term financially beneficial for a company) are not indicative of any sense of knowing what one's doing in the struggle to maintain a successful position in the gaming market, as I've pointed out, and if we're to go with any console manufacturer knowing what they're doing based on past success, Microsoft still aren't the ones to hand that benefit of the doubt award to.