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Microsoft has problems in their Policy Approach. They are thinking too "locally", only from an American Perspective.

Even if the cloud power could be real, you can't really rely on them because,

a) Not everything may be cloud powered
b) If anything, Sony has the same kind of advantages, maybe even better being already in the possession of services like Gaikai
c) There is no "online" requirement anymore, so the power of the cloud is mostly reserved for multiplayer, but any service with dedicated servers can do that as well.
d) The power of the cloud, in the way MS tries to implement, will be mostly confined to US, which makes its desperation outside North America even more apparent.
e) This will go down the road of the "Kinect" where localization suffers tremedously. Not everyone speaks English, and unless you tune it up to people's native languages, they will not appreciate it (maybe a gimmick for some nerds for a while). The exact same thing can be said of the cloud.

In short, MS has terrible Public Relations and have no clue what non-Americans (or at least non-English Speakers) want and/or need.



Playstation 5 vs XBox Series Market Share Estimates

Regional Analysis  (only MS and Sony Consoles)
Europe     => XB1 : 23-24 % vs PS4 : 76-77%
N. America => XB1 :  49-52% vs PS4 : 48-51%
Global     => XB1 :  32-34% vs PS4 : 66-68%

Sales Estimations for 8th Generation Consoles

Next Gen Consoles Impressions and Estimates