If they are smart they would become a third party software developer or team up with Nintendo. Because I doubt the PS5 is going to bomb as hard as the PS3 and the new Xbox is going to sell as well as the xbox 360.

Pretty much.  They will use the XBox brand to kind of "relaunch" the service and try to compete with steam.  They have a long way to go in this department as well however.

Overall I feel like the XBox brand is suffering from identity crisis.  I feel this way because they give little insentive to use either of their methods.

In the console space they have few true exclusives and cancel most if the new ips.  Most of their library can also be found on the PS4, which also has true exclusive titles as well.

Windows store is a mess compared to steam and no where near the value, but I feel like they have yet to really try here.  Using the XBox brand could give a fresh start to new tactics, so I feel like this is what they would try next.

Sony and Nintendo both know what they want.  The Playstation is a multimedia gaming console that has exclusive games as well as multiplats.  It sells well.

The Switch is a hybrid console playing of the success of their handhelds.  They have the highest amount of true exclusives and are all of good quality, but lack the same third party support as Sony.  They get some multiplats, but the PS4 and X1 is where most of them will go.  For what it is though, the Switch is selling very well in its first year and demand is high with a lot of good stuff on the horizon.

The X1 is just kind of there, not really excelling at anything.  They don't know what they want to be anymore, and that is half their problem.  To me, the X1X just seems like a glorified steambox.  If I want that, I will just build a real gaming rig.  Without much to offer in terms of exclusive incentive, I feel like XBox consoles are on their last leg.

The Switch doesn't have that much true exclusives yet. Splatoon 2, Arms, Snipperclip, 1-2-Switch... what else?

I'm waiting for Mario Odyssey and Xenoblade Chronicles 2 until i get my Switch.

XBox TOO

XBX is going to fail. It is a mid gen upgrade so it is not even going to sell 30% of it original. I think they need to launch next gen console sooner than PS5 with a 400$ price tag and actually have some real exclusives so people get excited

If it fails, they wish they did what they should have done. Launch an 8GB GDDR5 RAM, 8 core 2.3 GHz Jag CPU, and 5.0 Tflop 1075MHz RX 480 GPU, at the same price and time as Pro. I don't think XB1X will fail per se, but I think the sales would end up much higher if XB1X could just be slightly more powerful than Pro, at the $399 price.

I wonder if XB was possibly "forced/fooled" into making XB1X 6.0 Tflops just because the Pro (RX 480) specs were capable of approx 5.5 Tflops. Even with the Neo leaks of 4.2 Tflops, XB probably had to play it safe and go with 6.0 Tflops to make sure they were the most powerful, leading to the launch delay and $499 price tag.

The more XB talks about making it easier for devs and especially porting over from PC, as well as holding onto the media aspect like 4k BD drive, the more I see the next XB console becoming more of a Steam Machine/HTPC. With XB1X launching a year later than Pro, I can't see XB2 launching before PS5, unless PS milks the PS4 longer than the PS3.

Whether XB uses this to their advantage and builds a slightly stronger console for the same price as PS5, or whether they head in a slightly different direction, the future of XB is dependent on Live and their online services.

yeah but in terms of a console lifecycle and the total library of exclusives... Nintendo tends to be extremely strong with that. I'm not sure what Microsoft has done, they have practically axed their exclusives. As others have suggested, must be a play for a video game integrated Windows as that's where they make their money anyway. but if that's the point then they might as well just push towards Windows being a Steam like marketplace and abandon the home console market entirely

also to some suggestions about working with Nintendo or going third party- what does Nintendo get from working with Xbox? as it is I think it's plainly obvious, especially with the Switch and Nintendo's handhelds in general, that they target a pretty casual market anyway. They don't need Halo to really effect their sales much 

and as for Microsoft going 'third party'- they don't have enough IPs and internal development teams for that to be a logical suggestion. The only play long term is making Windows Live Games a Steam like competitor 

I'm not interested in reading all that but I'm suggesting a scenario where Xbox One is relelvant longer via incremental upgrades.

Hence, a new Xbox One in 2021 while the X1X becomes the budget option.

If it "fails" them I'm sure they'll focus on the next Xbox :)

They just posted a 9+ billion gaming revenue for the year, lol @ the idea that they are leaving.

Its not going to fail, but its not going to sell as much as the PS4 Pro. If it fails mid gen refreshes might work in three ways:

1) They wont make the console as powerful just to compete with what they expect the competition to use.
2) They will follow Sonys model to stay competitive.
3) They wont make one at anymore.