They manage to screw it up more often than not, and then wonder why nobody buys a Zune or a WMR headset or a Windows phone or an Xbox...
That's an unusual way to put it. That a platform succeeds by attracting developers wouldn't be new information for Microsoft. They are famous for being extremely outspoken about that very viewpoint. Steve Ballmer gave a famous speech with the line "Developers, developers, developers, developers!".
I've got a great gaming rig, if I was to get another console on top of my switch it would always be a PS.
Why bother buying the games console, if the same game is available by other mechanisms, the exact same game not a port.
They had to back pedal from that, brought in Phil Spencer, highly acknowledge in the game industry, he rebooted the whole XBox One approach, re-introduced the indie development support (yet another thing dropped in the meantime) as ID@Xbox program.
The pandemic delivery issues with the Xbox Series X and Series S, and the fact that dev teams have to consider two different hardware models when targeting the XBox made it less atractive than targeting the Playstation or Switch.
So even though they managed to recover from the mess with the XBox community, the efforts to recover from it have left it on a third place in regards to overall sales.
The current situation is actually pretty nice - there are three big players with big market shares from which neither has a clear monopoly.
Microsoft is seriously thretening to break that by buying themself a monopoly in game publishing though.
Xbox One (2013) sold 50 million Units compared with PS4 (2013) selling 113 million units.
Xbox X/S, their 4th gen Xbox, has sold less than 21 million units since 2020, when it was released, compared with PS5's 38 million units in the same timeframe.
Tbh, the latest gen of consoles is pretty underwhelming for me, I don't know how others feel.
This graphic from Microsoft shows clearly why the console industry is struggling. https://news.microsoft.com/wp-content/uploads/prod/sites/642...
The S is pretty readily available but is less powerful than the previous mid generation upgrade, the Xbox One X. Given that until very recently most games supported both generations there was basically no reason to upgrade from a One X to a Series S
https://www.microsoft.com/en-us/store/collections/xboxseries...
Practical computing performance plateaued like 10 years ago, which is why you're feeling unsatisfied. This applies to all markets of computing besides enterprise: Desktops/laptops, consoles, phones/tablets, all of it.
Plenty of people refuse to upgrade from their Sandy Bridges and Skylakes for Windows 11 because they still run everything fine. Plenty of people find smartphone upgrade cycles unjustifiably short because upgrades bring so little in practice.
As I mentioned earlier, the only computing segment still seeing significant leaps in performance to warrant constant and frequent upgrades is the enterprise, most obvious of which is the current "AI" fad.
The power of the last two generations of console have allowed developers to make high quality games cheaper. But they are also lazier. We aren't seeing the hyper optimized experiences that fully utilize the hardware like late generation PS2 and PS3. Consider that a PS3 has only 256 Mb of main RAM and 256 on the video card.