The only bad press had a lot to do with Sony's PR and the initial reaction from very pre-Sony boards like Reddit, Neogaf and N4G. Microsoft was pushing heavy digital, and wanted to do game sharing with digital games. The drawback is, how do you make it so people weren't installing a game on 100+ different consoles without some sort of online check in? Once you bought a game disc and installed it, you never needed that disc again.
They have done a good job since that time of righting their own ship, honesty they have such a better grasp of what people want with online play. It's an easy choice.