Lots of people don't like MS consoles for some different reasons: lack of HW quality, lack of glamour and excessive geekness, perceived closeness between XBox and PC games, making the former look unuseful for the owners of the latter, but also moral and psychological reasons, fear for the monopolies held by MS and its lust for power, but there is also the great appeal for Wii's novelties that makes it overwhelm its competitors.
So, to succeed, MS needs a lot of things:
1) Greater HW quality
2) Creating its own original and appealing style (this is difficult, they cannot be teached style, either you are born with it or you aren't and even if one must admit that Gates and Ballmer have their own peculiar style, we can't really say it'very appealing 
)
3) Doing something new (in fields different from sheer style), like Nintendo did: this can be done by good and creative designers and engineers. So they must not recycle those who did Zune, but fire them 
OTOH the first ad campaign (the "life is short" one) for XBox 1 was original and (black) humourous, they shouldn't have given in to priggish and squeamish people and drop it.
4) Losing their monopolies: people won't be scared anymore and they won't hate MS anymore 
5) Showing and demostrating less lust for power and more fair play: same reasons and consequences as above.
