They're doing fine. They are already implementing the friendliest multi platform plan in history. Play Anywhere is great for gamers invested in the Xbox ecosystem. Even if Xbox One performance isn't enough, they have Scorpio on the way or if gamers want even more, they can play their games on PC.
Xbox 360 BC gets better all the time, and they include features on the S model that you would have to spend another $100 for a PS4 Pro to match. Even then the S includes a UHD Bluray player you can't get on PlayStation. Not to mention mods work on Xbox and it doesn't work on PlayStation.
MS is doing everything right since the disastrous Mattrick launch of doom. I actually think that Xbox is already saved. It just won't ever have an impact in Japan.