I do think this will effectively kill the new XBox. Which I honestly don't really mind, I don't think we need a new machine anyway.

The outrage at a game requiring it and not being able to handle it is one thing. If people's consoles start being useless like that... That's it. They'll be returned, people will stop buying them, and things will not go well for Microsoft, no matter which games are exclusive to the console. Customers will go elsewhere, and devs will follow.