There's no point in even comparing a smartphone to an Xbox. Conflating smartphones (still primarily used as phones, therefore always connected to network) with tablets (often WiFi only and connected only when an available network is within range) actually hurts your argument. (Xboxes are stationary so they don't have the same connectivity problems of Wifi tablets.)
No one I know uses Xbox Live, and of the 4 360 owners I know (myself and 3 others) I'm the only one who has it connected to the Internet. Two of the others are typical gamers who like shooting things, the other is a lady who bought it so she could use Kinect for... whatever it is one uses Kinect for. I think it's yoga or dancing or something... but I don't really know.
Now, the main reason those others never connected is because they don't have WiFi for their Xboxes and they don't have a hub near it due to the layout of their homes. Which brings us to our next difficulty and a fatal flaw in the current Microsoft strategy.
Microsoft, like many before them, has contempt for video games. They want a system that's an "everything box" and "used by the whole family." "Women are the new core, " is not just a pickup line for Microsoft executives, it signals a major change in how they are positioning the Xbox in the home.
Currently, my Xbox is hooked up in my office to a computer monitor with HDMI inputs. Why isn't it hooked to the big screen TV in the living room, one might ask? Because if it were, my wife would literally have killed me by now. Then she'd have all that blood to clean up off the carpet, not to mention disposing of the body. I love my wife, so I don't want to put her through that.
So, our set up now assures her that she will never have to miss a single episode of Law & Order: SVU, and I will never have to watch a single episode of Law & Order: SVU. Marital Bliss!
But it means I don't need to use the TV functions of the Xbox. If I want to watch Netflix, or Amazon, or HBOGo, I just switch the monitor over to my computer, although when I'm watching TV I prefer to do it with my wife (unless it's SVU or something about those non-Star Trek Cardassians.)
Now, if I do what Microsoft wants, and hook the Xbox One (which I'm not planning to ever get, but I said that about 360, so you never know) up in the living room, I will no longer be able to use it to play video games.
In which case, aren't I better off with a Web connected Blu Ray player, or a Roku Player?