MS isnt pulling no PS3. The only reason why PS3 was able to bounce back is because of Sony's first party support and the devs talented enough to exploit Cell in said 1st party. MS got to comfortable coasting on 3rd parties last gen and now its biting them.
This is around what I'm thinking. A lot of people are saying MS can make a comeback but there doesn't seem to be a lot of avenues to do it. Its only a big seller in two countries versus Sony being worldwide. No way they can afford to money hat being outsold 2 to 1 so third party advantage is out. And their first party isnt going to save them either. While they may be fun games, I doubt black tusk gears reboot and 343 Halo are gonna do anything to turn the tables. Aside from those, MS first party isnt that fearsome. Then to top things off, the PS4 will always be significantly more powerful and cheaper. Good luck with that comeback. Its not impossible but it seems pretty unlikely.