This is standard business 101. The Xbox x came too late to make a difference. However at the start of the gen it’s the core gamers that define the user base and less so the casuals that follow. You must factor in everything at play, both sides care about power and if you say otherwise....well at least my side is honest with what we want, there’s no false modesty at play ;)
That right there is your problem. you assume that just because I prefer Sony's offerings that this is a matter of us vs them, and it's just not. This console war mentality needs to go, and the moment you said 'my side' to describe microsoft was the moment I realized that the console wars are still going, it's just a cold war.
I'm a veteran of the SNES/Genesis era, the PS1/N64 era, the Gamecube/PS2/Xbox Era, and the Wii/Ps3/360 era...I'm done with console wars. all I'm trying to do here is explain WHY Sony is doing what they're doing, and why it's worked and how the PS4 became so successful. All Xbox One needed to do was have good games, but that's where it failed and Sony excelled. Performance wise, the PS4 and Xbone were virtually identical until the half-gen upgrades, where Xbox got a significant boost but still didn't sell as well as the Ps4 Pro. Microsoft offered a more robust backwards compatible business model as well as Game Pass - which is one of the best values in the history of gaming - but it still wasn't enough. No amount of power, backwards compatibility, or....I guess that's really all Xbox had over PS4...will overthrow a great game library.
IT's like going to a restaurant to get a lovely steak dinner. You can go to a place that has the biggest pile of fries and the loveliest side of veggies in the world, but it's the steak people care about. If one company has a bigger, juicier, meatier steak while the other has a bigger pile of fries and some garnish, the steak is what sells the meal. the garnish and more fries are nice, but they're not what people go there for. The steak is a robust library, the fries are operating power, and the garnish is backwards compatibility in this belaboured metaphor.