Ok, so this thread has gone on long enough without me answering my own question. So here's what I would do...
1. Launch the next Xbox in 2020 as an upgradable system, with parts that are so easy to change, that a toddler could do it. Anybody remember how easy it was to change the harddrive on a 360? Now just make all the parts that easy to change out. Xbox starts out as a base model, and you can then make it as powerful as you want it to be. Or you can just buy a shell of an Xbox and the parts separately. Building your own custom Xbox console should be as simple as snapping Legos together. This opens up a whole new market for hardware sales, and takes building your own PC and brings it to the masses.
2. Make the Xboxlive storefront as good as Steam in every way shape and manner imaginable. You've got discounts on games? Our discounts are just as good! You've got an eternal storefront that will never go offline, so your digital games will never be lost? So do we!
3. Put the revamped Xboxlive storefront on Windows, and make it replace the awful Windows live storefront.
4. Allow people to sell or trade one digital game that they bought a month if they have an Xboxlive subscription. Give the power back to the consumers. This makes it so buying digital doesn't mean that you can't trade or sell your game. This gives real value to digital games as a whole. It also tells the consumer that they are sorry about the no-tradable-games fiasco from the launch of the XB1.
5. Offer money to Japanese developers so that they will port their games to Xbox. There really isn't much MS can do about Sony's 1st party lineup, but it's downright embarrassing when so many good third-party games aren't on Xbox. Where is Neir: Automata for Xbox? Where is Nioh? How about Tales of Berseria? If MS doesn't do something about this then by the end of 2018 there will be over 25 fantastic games that are playable on PS4, but *not* playable on Xbox. That's ridiculous, and a pathetic showing on MS' part.
6. Make Forza a series that arrives every two to three years. Take 75% of the talent dedicated to Forza games and put it to work making two new IPs. Leave enough talent on the Forza team to allow them to finish a new Forza game in three years' time.
7. Stop hyping so many mediocre games. Sorry but Crackdown 3, and Sea of Thieves won't be good. Stop acting like they will be. Rare hasn't been good since the 90's, and Crackdown 2 was mediocre. Yes, let those studios keep trying to make good games. There's nothing wrong with this. But don't make these games your end all be all, marketing push. Do you see Nintendo wasting all their money promoting games like Hey Pikmin, Paper Mario Color Splash, and Captain Toad's Treasure Tracker? Of course not. You don't hype up your B team developers like this. That just sends a message that you don't have any good developers working for you.
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