1. Get away from the Halo/Gears/Forza reliance - Seriously, by this point it feels like these three properties are all we ever see from Xbox Studios these days. Have these IPs continue sure, but don't act like they're the only ones you have.
2. Variety is the spice of life - Take a page from Nintendo in this regard. Nintendo publishes a lot of different genres each year. Fighting games, Platformers, RPGs, Action games, Multiplayer games, and really experimental shit. Complain about them not getting AAA games out regularly all you want, they at least know how to offer a diverse content lineup. Microsoft needs to do the same. Let your studios experiment, allow them to do a variety of genres, and don't just stick to one genre, art style, or gameplay type exclusively.
3. Also encourage AAA quality - Obviously you can't make every game a blockbuster, but if one of your developers wants to make a top-teir AAA, high budget title, then give them the budget to do so. This is where you should also take a page from Sony, who gives their teams as much time and money needed to make really ambitious titles. Right now Xbox has a reputation for lacking in AAA exclusives, so if one of your developers want to make something of that caliber, then let them do it.
4. Keep them Xbox exclusive - If you want people to also play their Xbox Studios games on Windows PCs, fine, but don't negate that by distributing them on platforms like Steam or Epic Games. Keep them locked to the Xbox PC and Console Platform. If it's a first party game, then I should only be able to access it from either an Xbox console, xCloud, or the Xbox Launcher on PC. I get what Microsoft is doing with their initiative, they want Xbox to be on any screen imaginable, and that's a fine ambition, but make sure your games are locked strictly to the Xbox ecosystem.
1 Nothing wrong with key franchises, especially since others have failed. These IPs need to keep thriving to help others as well.
2 Sure, but at the same time they need to focus on IPs that will attract the userbase they need. We saw Sony ditch FPS after they had got the marketing deals for Destiny, SW BF and CoD, so they could focus on open-world and 3rd person adventure titles.
3 I don't see this happening too much. Their main studios yes, but the studios they bought are most likely going AA. Gamepass is what they are looking at in the future and getting out smaller titles on a more frequent basis makes sense rather than longer AAA development games.
4 With gamepass, this won't happen. They aren't going to back down from this.