No reason to panic.
Sales of X1 are well above Wii U and it looks like they will meet their set conservative targets easily.
Game wise, MS is looking great this year with Quantum Break, Sunset Overdrive, Titanfall, Kinect Sports Rivals, and probably Halo 2 Anniversary and Forza Horizon 2 as for very probable titles. And down the pipe they have a new Gears of War, Halo 5, Fable Legends, and rumored Crackdown 3 for sure. And I am sure they are working on new stuff as well.
Dashboard wise, MS has created a great architecture that can be enhanced and improved as required so the experience will keep getting better. And in doing so, it will draw press attention.
Hardware wise, they started $100 more expensive then PS4 and they have larger hardware. This will give them more opportunities to do price drops and slimmer re-designs.
As for Europe, MS cannot win this generation there. Their best hope is in the UK and that will be a saw-off with Sony. In Japan... Well, that's Sony / Nintendo territory and home turf. Always has been, always will be.







