I assume you're referring to Xbox as a console/hardware manufacturer, because Xbox is currently the world's largest publisher and isn't going anywhere.
So, regarding the hardware premise, I think Magnus's idea makes totally sense, and fits with the situation of a Xbox multiplatform and Windows gaming in the same ecosystem
1- Specialization: Accept your place in the market, which you've reached through your decisions.
Perhaps the Xbox "console" now belongs to be a hardcore premium product. To be, for example, a technological benchmark reference against the "competition" from which you need to differentiate yourself.
Do it well, and you'll have a hardcore user base that will generate continuous revenue, long-term subscribers, and along the way, you can recover brand image, keep Xbox in the conversations on forums and social media, and be a referencial product for users and also devs and Studios.
A 10% market share built entirely by hardcore fan players is a continuous and healthy source of income that you add to the income of your games on all platforms.
- A well-executed strategy that is maintained for years. People need clarity, unlike the 180-degree turns of the last two years.
- Marketing: This strategic execution also requires investment in marketing tailored to that strategy and a presence across all media, not just Twitter and Instagram. Ideally, Greenberg should be fired and replaced with someone competent.
- Boost the ecosystem with a flagship OS to attract more casual users through devices like handhelds, Xcloud TV, while simultaneously strengthening Windows Gaming, the Xbox Store, Game Pass, etc., in the face of the Steam OS's advance.
As I always say, Xbox's problem has generally been the disastrous execution of strategies. Having a great product and ruining its potential with bad ideas or ideas that were too far ahead of their time. Certainly, with the resources and potential, they have everything they need to be in a different situation.