Fair call mate. I too think and hope Nintendo will do well with the switch. I reckon Xbox can still be somewhat competitive but they really need to be cheaper than the PS4 and some decent exclusives. Xbox 360 success was mainly attributed to being cheaper then the ps3 and of course the kinect which when it was new had ground breaking novelty appeal - kinda like Wii. Nothing like these factors exist today for MS which can make it tough for them. Not even sure they care that much for the console business anymore either - hardly even trying in fact.  I think they are moving into a different business model with a more integrated services focus with hardware being in the periphery. But yeah they need to be cheaper and seen as a budget alternative which I don't they will do this time round. They are not prepared to go all out like in the 360 days. I kind of understand that too as I do not think consoles will be around forever.

Xbox Exclusives are more system seller then sonys games if you look at the attach rate, this and scorpio will save xbox a good second place

So how much do you expect to sell Scorpio in life time ?

I think if they release Scorpio with some kind of VR/AR compatibility that has a killer app, that could bring them back. But I doubt that happens, especially at a decent price point. I suppose Steam integration could have a pretty big effect, as well.

If they come out at E3 and just talk about how powerful Scorpio is for the majority of the presentation I think it's a sign that they've essentially thrown in the towel.

Announce Grabbed by the Ghoulies 2 at E3?

Kakuto Chojin HD or Tao Feng HD?

I wonder if we'll start seeing threads advocating for MS to go third party?

Nothing

This could work: buy Capcom and make the next Monster Hunter games for XBOne, Windows Mobile and PSV, but neither for Switch, nor for PS4, nor for Android, and port to Windows PC one year later to avoid damaging XBOne sales. Same thing for all the other Capcom games. This should attack Switch from every side, every possible competition direction, but without making other MS competitors stronger where they could be or already are dangerous for XBOne or Windows.
Same thing, if possible, with another publisher of games that usually sell very well on Ninty or Sony platforms.

They already  tried that last genn,it failed.

New banjo kazooie game

Not with Monster Hunter, while Ninty, thanks partly to grabbing its exclusive (although early price drop was the main weapon for victory), and despite 3DS horrible drop after launch window, managed to make its portable slaughter PSV.
While GTA Liberty City was the best selling single game on PSP, MH was the best selling franchise, and it became the best selling 3rd party franchise on 3DS, so that PSV both suffered from not having it, and this was the biggest blow, plus it being on its rival.
Obviously this alone wouldn't grant XBOne a victory, but it's probably the biggest thing MS could do on the SW front besides pushing more what it already has, either 1st or 3rd party.