Here's what people don't understand: Microsoft is the most unnecessary component in the console development sphere. They simply aren't needed.
Some people look at that as a negative, a reason why Microsoft should exit the industry, but I see it more the opposite way. It doesn't matter if Microsoft does significantly well or not, they decide at the end of the day whether they want to pursue consoles or not. Unlike Sony or Nintendo Microsoft would not crumble without their gaming department. It's why they focus on subscriptions and software sales over consoles. So, if Microsoft decided to pull out that'd be no skin off my back and I'd just be happy with my excellent Windows service.
This freedom allows them to do some crazy things, but this gen they are more 'laxed. This is the least interesting version of Microsoft you could possibly have, but it is the safest for them. If they want to do somthing crazy and try to overtake PS i'd love to see their competitive nature, if they don't that's fine too.