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I thought MS was in prime position to make their 8th gen console the best selling one. They outright won the US/NA and UK markets (probably the most profitable ones) even against the Wii and were making inroads to continental europe.
Their financial situation ofcourse is almost unrivaled (while Sony was struggling a lot in 2012/2013), so imo they could have easily released a more powerful console at a lower price and made sure they had many exclusives (even from traditional multi plat franchises) lined up, if they really wanted to take the VG console crown and dominate the business from here on out.

And then it pretty much all fell apart for them.