And yes, that is a bad thing. 

They can't just keep investing in exclusivity deals, that is not enough. The problem with that strategy is that they will never beat sony on that front. Sony has more first party studios and similar but stronger hardware so all exclusivity deals will be transparent moneyhatting and noone is buying the cloud (atleast not yet, so there is almost no point in using it as a selling point). 

They need to ease up and start investing in other things ASAP. When I say other things I don't just mean tv and sports again, they need to start working on services that may or may not be related to gaming. Sony has morpheus, ps tv, game sharing, ps now, etc. Those things may all fail but Microsoft can't afford a wait-and-see attitude, they need to start investing yesterday or else they are going to have another windows phone situation where they show up to market 4 years late. 

Hopefully next years E3 won't just be a rehash of the past 2 where they trot out cinematic cutscenes and get praised for "focusing on games", they need to announce something new and innovative very soon. Services, not just games Microsoft.

Well they did just get a service, whether it was moneyhatted or not idk, EA Access. 

You're kidding right? They took a beating for their initial TV TV TV TV NFL TV TV TV lineup...now people are criticizing for being too game focused? o.O

Disagree, it's a games console first, and a 'other' 2nd. Sony had this issue last gen not having a clear enough message with their product, and that helped contribute to their issues early last gen. Likewise with the XB1 this gen, the TV focus hurt them at the onset (along with some other things).

Lets not pretend that microsoft is the only one that does this.... cinematic is the trend these days for pretty much all the major companies.

When you run a gaming company there is no such thing as being too focused on games.

Every company making consoles should have gaming as their main priority. If microsofts buys enough exclusive games and deals ( obviously without losing money ) they will win cause games make the console.

The messaging is one thing. If they were just focusing on games in their messaging while having other stuff on the pipleline that would be okay. But they have nothing on the pipeline! That is a problem! Message how you want at e3, but you need to have something!

Isn't access just another version of games with gold? It isn't really anything new and it is not something that they can claim for themselves since they don't own it.

PS Now seems to be a complete flop as the prices are simply way too high for it to be even considered to be a fair service.  Microsoft doesn't make any tv's themselves, so how do you expect them to have XBOX tv?  Morpheus is something that Sony has been perfecting for three years now.  It's not like Micrsoft can drop all of their efforts into getting more first party studios just to make their own virtual reality headset.  

The exact thing that Microsoft REALLY needs right now is more first party studios developing games for the XBOX One and only the XBOX One.  Microsoft screwed up by allowing Titanfall to be also sold on the XB360, which allowed XBOX fans to play the new exclusive without going to their next gen console.  The problem that I see is that Sony has great relationships with all of their first party developers.  Sony also has first party developers in Japan to appeal to the Japanese market.  The even more troubling issue is that the original developers for Halo and Gears have now moved on to other exclusive titles.  It seems that instead of gaining new support, they are rather holding on to the few franchises that made them successful in the past.  

I can agree on one thing that you said.  "[Microsoft] need[s] to announce something new and innovative very soon".  Coming out with Halo, Forza, and Gears every year is not going to win over the consumers heart.  Buying timed exclusivity or downloadable content first on XB1 is not going to win over the consumers either.  They need to come to next years E3 with new first party games that will come out in the near future instead of showing 3rd party after 3rd party games with timed downloadable content.  

What if one of those sony services turns out to be a major success while MS was busy focusing on buying exclusives? They would be back playing catch up. They need to announce something other than an exclusive game soon. Wii proved that sometimes it is more about innovation than games (most games on that console were shovelware).