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LudicrousSpeed said:

The pricing of the Scorpio tells me that financially the state of Xbox must be in a good place for them. So I assume by "recovery" we're talking back into a state where they can sell 80 million consoles or whatever the 360 sold. I think the easiest answer is being ready to eat a lot of money on hardware. Outside of the policies blunder at the reveal, their biggest mistake was launching weaker hardware at a more expensive price. They have the brand power and games to sell a lot of consoles, but the mass market cares about price. Launch hardware that matches or exceeds the next products from Sony and Nintendo for a better price and there you go.

To offset those hardware losses you'll have more games selling, more revenue from Live, and more revenue from other services like Game Pass or EA Access. It's too late with the Xbone, that reveal and price created a snowball for PS4 that has rolled downhill and become too big to overcome. I think it really is that simple for them next gen though, just be a lot smarter price wise.

Xbox doesnt have the brand power and games to sell "a lot of consoles" outside the US and Halo isnt what it used to be. They tried what you suggest with the 360 -good HW at low price- and in the end PS3 took over. It's all about the games, MS just doesnt have them. They haven't cultivated a 1st party that puts out great IP at healthy intervals, instead relying on their "triforce" and moneyhatting 3rd party exclusives like Bioshock, Mass Effect, GTA IV, COD DLC etc but they were all temporary measures prolonging the arrival of a big ass problem, which is hurting them now.

Xbox will never dominate gaming, anyone that believes otherwise just hasn't travelled the world enough to know how weak the brand is outside Merica. It will never sell another 85M. MS doesn't view gaming thru the same lens as Sony and Nintendo. They tried to bruteforce their way in just like Zune and Windows Phone and the fastest way to do that is to buy 3rd party exclusives instead of making them.