MS has absolutely squandered the potential of the XBOX with their mismanagement of exclusive IP.
Sunset Overdrive was incredible but they let Sony buy the IP and the sequel was scrapped in favor of Spider Man.
Halo is a shell of what it once was, having abandoned split-screen co-op (after promising it post-launch).
Gears of War has run it's course.
MS have failed to innovate or effectively manage studio/publisher acquisitions so what they're left with is a PS5 that can't play a lot of PS5 games. I don't see how they rebound without a massive shift in strategy.