Their biggest asset is their money, so get more timed exclusives.

Just try to not offer an inferior product anymore:

-Make Xbox Live not cost more than PS+

-Reward GOLD members with decent games

-Make the Xbox One $300 like it should be

-Announce truly new 1st party exclusives

But what are the chances they will do any of these things?  (I do think the $300 price will happen by Halo 5 though).

Or, you know, maybe wanting to give people another reason to buy the console.

Accept reality and 2nd place, make it as financially viable product as possible.

While certainly a good move to make, how much would it cost them to buy it?

GTAV sold almost 20 million on PS3 and almost 6 million on the PS4.

Rockstar would lose not only goodwill but easily over 100 million dollars.

100 million? haha dude, they would have to pay around $1 billion for it to be exclusive.

Maybe sponsiring more exclusives like scalebound by japanese devolopers

It would be a brilliant move if they could get for a nice price. Nonetheless, I was more or less joking, since I don't think Rockstar would ever agree to such a deal.

Exactly.  It's the best they can do. The sooner they initiate a price drop the sooner Sony will respond. The $50 difference isn't threatening, but a $100 would cause a reaction.  The Xbox One component costs are rising and no cost saving revisions have been made at this time; however the component costs of the PS4 have lowered and a cost saving revisions has already been done. The PS4 has a huge advantage going forward.  If Microsoft does drop the price more, what happens when Sony responds?  A $199 Xbox?

Microsoft already announced a huge feature comming to the XBO this fall. Windows 10 intergration is not something to over look. The ability to use universal apps on XBO could easily give it a major advantages over PS4. Both consoles only have 1 way to show market growth, and that is expanding functinallity.

The other big thing comming to XBO is Sling TV. This is a way for XBO owners to cut the cable box completely. This again is something that can not be over looked.

If Microsoft keeps working hard to get timed exclusives, build up their first party, and deliver on the games front they will be fine. Expanding the market needs to continue to be their focus. The best thing they can do is try to be more open than Sony. Keep letting any and all worth while software make its way to the system. Turn XBO into the SmartPhone of the TV, that is they way to greater success. This is true for both MS and Sony. They both have a chance to steal the home market, and use it to piggyback to mobile success.