Xbox is in a difficult position. I think they fell victim to over-confidence. They thought they could do what they wanted and still gain or hold market-share. They've learned the hard lessons that both Sony and Nintendo had to learn, which is that people will move the hell on if you mess up.
As it stands, we're still seeing shards of the vision they intended from the start, with the Xbox brand being a juggernaut merger of home console and PC that beats Sony in North America and rivals Steam.
Of course, that didn't work out. What's more, a lot of their plans for transforming the nature of gaming also fell flat, like the "games as a service" mandate that killed Lionhead and the Kinect disaster. They're still recovering from that. Missteps in game development take years to overcome.
