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I would say its more of the fact that MS has to rely on 3rd parties and so that is their focus. Nintendo and Sony have gotten to the point where they make a lot of the best games on their systems, MS does not have that yet.

So to a degree, Nintendo and Sony were relying a lot on their own games whereas MS had to go outside and get games from others.

However, MS is good in this kind of game, in my experience, most large western companies like MS are extremely good at interacting with other companies and using their expertise in distribution/capital/etc to bring them onto their side. Contrast this with Nintendo who is still extremely insular.