Well maybe if they didn't send their first party IPs they acquired into the bin they would have something. They killed perfect dark, they killed conquer, banjo kazooie, and other IPs. They have themselves to blame for acquiring and destroying those IPs.
They should've focused on making their console stand on its own instead of trying to imitate and destroy the competition.
As a consumer for me it's a no brainer why Xbox has lost and will continue to lose. Unlike Sony and Nintendo Microsoft has lost its image. Microsoft knew what it wanted to be with the original Xbox but because the original Xbox wasn't "successful" or "first place" instead of Microsoft focusing to strengthen its original image they decided to become a multiplatform system and then proceed to deny that they were one. Even to this day that decision plagues them. Which...
They can easily fix their issue by making a classic gamestop rent shop since hollywood is essential out and there's options like redbox