One of his first gigs was when a software company mistakenly contacted his business to make a program of sorts, and rather than explaining the situation, he was like “Who? Oh yeah, sure, we are definitely that company you were looking for, we totally know the thing you’re talking about, we’ll do it!”. He was a liar from the very start, it just took some time, and a handful of overhyped (by him) games for people to catch on. If I had to point to an specific event for the decline in his public image, it’d be the Project Milo presentation for the Kinect (just revealed as Project Natal).