How did Microsoft engineers not realise this could be an issue going forward, especially as the ps5 has such a commanding lead, devs will never use a Xbox as the base platform.
Honestly i think MS actually thought xbox would be head to head with sony with the series x, look at the 360 era, 90% of games were made with the 360 in mind while ps3 suffered alot, MS more then likely thought the same thing would happen again, they even tried it with the under performing xbox one, MS mentality is if its the cheaper option itd sell more, hasnt been the case in 2 generations now