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curl-6 said:

Releasing a new console won't solve the problem.

The problem, which has crippled them for over a decade now, is their complete inability to release a consistent stream of quality software. 

Nintendo and Sony manage to put out acclaimed and well made games on a regular basis; Microsoft's last one was what, Forze Horizon 5 two whole years ago? And they haven't had a proper killer app since the Xbox 360 two generations ago. It's ridiculous.

Software sells hardware and as long as they continue to mismanage their development side as they have for the past 10 years, people will be less and less inclined to buy their consoles and they may as well just go third party. They need a radical overhaul of the whole Xbox division. Stop sinking years into the development of games with no system selling potential. Focus on building the kind of developer culture that drives Nintendo and Sony's first party output.

Releasing a new console in 2026 or earlier risks losing the few loyal customers they have left. 2027 wouldn't be so bad though; but they need to make sure that they have the software ready; learn from how Nintendo got the Switch off to a flying start with a first year stacked with great games. Otherwise, they'll just end up in the same situation all over again; stalling in sales because their console has "no games".

The whole argument the xbox division is the same as it has been the beginning of last gen is not accurate at all. They have radically overhauled their Xbox division since 2018 and how they manage their 1st party studios. It just takes longer than ever to release games now, along with covid delaying everything. Most of their studios didn't start making first party games for them until the last 2-4 years. 

It's not like MS is the only one going through this. Sony is going through their own delay woes currently, which is okay and normal. Sony had more ready to go to start the gen, but it's catching up with them. The difference is, Sony benefits from bigger brand awareness, even if they have an objectively worse year than the competition. It doesn't effect them from a sales perspective. 

Xbox's last critically acclaimed game was Hifi Rush earlier this. Followed by 2 solid releases with Starfield and Forza Motorsport, along with a handful solid smaller 1st party games too. Their efforts started showing this year. Next year is looking great for xbox.