Seriously? You added an Ouya Master Race option? That is precious and I had to vote for it

In my opinion Phil Spencer does not believe in ever winning this generation anymore and so I think he does not want to commit huge amounts of money in producing 1P AAA games when they won't yield as many sales as he'd hope if the Xbox was the system selling almost 80m units instead of the PS4.
So I'd say don't expect big guns this generation anymore, just side bonuses like Game Pass, Backward Compatibility, 3P support etc.

I'd say Microsoft is certainly working on 1P AAA titles but for their next gen system, that's where Phil wants to take the fight and that's why this gen things are now super quiet and no serious 1P AAA title is going to show up any time soon as he probably wants to put the full force of his army in next gen's productions. I see no other logical reason to explain the AAA desert in which the Xbox currently stands. Of course he cannot publicly admit this so he ends up saying what he said to IGN.

Not sure why you are asking me. I am not a Xbox people.

However I will answer.

Niche is something that doesnt appeal to the masses. 

Eg - Call of Duty is not Niche, Dark Souls is Niche. 

Niche can still be great but that doesnt mean everyone will like it. 

(Also i read your replies, nationality has nothing to do with it)

There is nothing sad about what Phil Spencer said and there was a recent post in the Xbox Empire thread that said MS will keep making hardwares after the X1X.