The pricing of the Scorpio tells me that financially the state of Xbox must be in a good place for them. So I assume by "recovery" we're talking back into a state where they can sell 80 million consoles or whatever the 360 sold. I think the easiest answer is being ready to eat a lot of money on hardware. Outside of the policies blunder at the reveal, their biggest mistake was launching weaker hardware at a more expensive price. They have the brand power and games to sell a lot of consoles, but the mass market cares about price. Launch hardware that matches or exceeds the next products from Sony and Nintendo for a better price and there you go.
To offset those hardware losses you'll have more games selling, more revenue from Live, and more revenue from other services like Game Pass or EA Access. It's too late with the Xbone, that reveal and price created a snowball for PS4 that has rolled downhill and become too big to overcome. I think it really is that simple for them next gen though, just be a lot smarter price wise.
