Content, Hardware, Price, User Experience/Features
In each category the aim should be to better than what anyone else does. That's not to say you cannot have your own vision , at the very least if you enter the same market as others, the aim long term should be to do better than what they do, otherwise what it is the point?
It's not console fanboy war shit and anyone who does say it is are being disingenuous. What it is, healthy competition for the consumers money and time with your products.
I firmly believe Xbox can be a lot better than it currently is and can better compete with Sony/Nintendo. If the people at Xbox are putting roadblocks on that, then it's those people who are the problem. They obviously won't resign from their positions, it's on them to do better or get people in who will.