i think MS in gaming is a sad story of unmet potential and an extreme case of nearsightedness. They just went about so many things wrong.
To begin with, they already always had windows. If they took the initiative and were innovative, there is no reason why steam would exist today. Instead of a steam store for the PC it would have been a windows store. They would never have needed to get into consoles.
This reasoning is validated when you consider how much they are trying to get into the PC gaming space. Sad when you consider that they pretty much always owned that space to begin with.
Then when competing as a console manufacturer..... they just were stupid about it. Like they never quite got it. Games sells hardware. sold hardware Garner's more games. This is the most prominent rule in gaming. And somehow MS just never seemed to get it.
Three console generations on and they have just 3 major franchises or IPs under their belt. Once they had like 4 (if we include fable) but now it's just 3. it's almost sad when you think of it.
saddest part is that they lost the console gaming space at the worst possible time they could have lost it. at a time when digital distribution started taking a strong foothold. When BC in future consoles is almost a guarantee. I mean, just try telling someone that has like 50 digital games either bought or downloaded via PS+ tied to their PSN account to not buy a PS5.
I feel MS will keep doing what they are doing now. focus as much as possible on both and reap their rewards from wherever they come.