They are definitely admitting they were wrong about the Kinect, but they are standing by their price point. The Xbox One with Kinect is still $499, and they're only getting to the same price as the PS4 because they took out the camera.
The worst part is that Microsoft has come out and said publicly that the camera cost almost as much as the console to make (probably both in production and R&D), and yet the console only drops to $399 without it.
If anything Microsoft is saying they think their product is worth more than it actually is.
The Xbox One, by itself, should be $299 or less.