It occurred to me that Microsoft has always tried to forcibly change the market with their gaming ambitions. The problem is that they were always doing so from third place. It’s pretty rare that the weakest contender can somehow find an idea their bigger rivals haven’t considered and flip a market to their advantage. In their history, they had only had one slight chance at it (the 360 to One transition) and they blew it.
My opinion is that they should have hunkered down and kept trying to make a top-tier gaming platform rather than turning the Xbox One into some sort of multimedia home hub idea. They could have still felt out their ideas overtime and seen what if any of them the market would accept without degrading their money driver (games!).
Microsoft suffers from a desire to make big bets rather than do the hard job of building up overtime. I won’t go into why they have always tried to shortcut their way to the top, because frankly I don’t know. I guess the desire for money makes you dumb? To quote a hockey term, “gotta do the reps boys”.