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Microsoft needs to do A LOT.

It needs to show off a bunch of homegrown games, it needs to build up its internal studios, it needs to make meaningful partnerships with third parties (buying a year of exclusivity doesn't count), and it needs to back away from gaming-as-a-service.

I don't have a lot of faith, as Xbox has been doing the complete opposite: delaying or canceling big projects; closing studios and mothballing IPs; and flirting with gaming subscription services.