You have to admit, the 360 selling almost as much as PS3 (and the PS3 only caught up at the end of the generation) was a huge result after the original Xbox.
Phil Spencer is wrong, I think a great stream of games, a shared culture of excellence and cultivating the studios it already owns would gain them marketshare, after all, that's what Sony did during the PS3 era. However, that would be in a medium to long term and MS wants results now, which is pretty much impossible as they haven't earned it.
Anyway, it's not a surprise, they abandoned the Xbox as a console concept years ago and now it's merely a launchpad for services such as GamePass. If MS could put GamePass on PS and Nintendo, I'm not even sure they'd bother to launch a successor to the Xbox Series X/S.