I'd say Microsoft's biggest shortcomings prior to the launch of the Xbox One was their failure to "read the room".
7th gen was a strange beast. Things like motion controls, features ("It only does everything") and casual stuff like Guitar Hero seemed like the surefire route to success. Even power seemed like it wasn't necessary as the weakest console by far went on to be the best selling. Amongst other things, lot of that stuff went into the Xbox One launch and it just didn't look good compared to the PS4 which had pretty much no weaknesses compared to the One.
This gen, I feel like Microsoft has learned the error of their ways. Yeah, they've never really been the industry leader but what they have done in the past have catered to my personal tastes. If they can just get the launch right, they should do well.
