Increasing software revenue means nothing to the console consumer. That's fodder for executives wanting a bonus. As for Gamepass and Cloud, I'd debate if either represents a real selling point to the console market, given that Sony dominated this generation, and Switch will likely outperform X1 before the end of the year.
In the console market content is everything; Sony has more of it, and it's better. Microsoft is dancing around this fact with business buzzwords, but without a shift in focus toward actual games Scarlett is doomed to being a distant 2nd or worse if Switch drops a hardware upgrade within the next couple of years.
Are you forgetting that Microsoft just went out and buy a whole stable of new developers? Talented developers, with a history of making good games? Exactly what "business buzzwords" is Microsoft using, lol.