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Xbox has the following 3 problems:

1. Killer apps are missing
2. The many studios Microsoft bought surely will come out with many (exclusive) games in the future but will they really be killer apps? Will they really be high quality games? I have my doubts.
3. Even if a good chunk of these games the many Microsoft studios will bring out are of high quality, they come too late. 3 and more years into the generation, no game will magically change the destiny of a console. The only hope is that those future games will give Microsoft's next console a boost but then again, so many of those games already came out for the then old generation (Xbox Series S/X) which doesn't make them killer apps for the new console and until games come out that take full advantage of the new console we are already again too late into the console cycle...

I think those 3 points are the big dilemma of Microsoft in the console market. Yes, Sony doesn't have exclusives that take full advantage of the PS5 either but the dynamic for Sony's console is different. Above all, Sony doesn't have to proof themselves, they are currently king (in the premium console market). It is Microsoft which has to proof themselves, which has to gain market shares.