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Soundwave said:

They needed a reinvention of Halo that sparked the franchise back to massive blockbuster status (ie: the way BOTW did for Zelda) on day 1, they needed a new Elder Scrolls game (Skyrim 2) instead of Starfield, and they needed that Indiana Jones game about 2 years prior. Eveything was too little or too late.

Innovating is rarer and harder these days, 343 Industries was never a top developer, and the 1st person shooter competition on console is too fierce for Halo to realistically explode in popularity. A bigger miracle was needed than BotW. One reason Gran Turismo remained strong despite inconsistent quality and Halo didn't is that GT still has no competitor on console (like Halo didn't in the 6th generation). Xbox One and 343 destroyed Halo's momentum and now it's very difficult to return.

Starfield isn't Microsoft's fault, and Bethesda's main problem is their deteriorating quality. A new Elder Scrolls wouldn't have performed that much better if the quality is comparable to Starfield and it also skipped Playstation.

Xbox's biggest weakness, by far, is day 1 PC support. The longer MS does that, the deeper they will bury the hardware. And if Sony follows suit, they will face the same fate but at a slower rate.