To show off the hardware no. I think as a PR move, inherently makes the Xbox a better party console and plays on nostalgia. Bundle Halo 1 and Perfect Dark Zero. Upsell MCC and Rare Replay or Gamepass. Then on a related note, they should allocate resources to create more party/social games and encourage their devs to offer split-screen int heir games. I strongly believe there's value in positioning the Xbox as also a great party console that people are going to wish you had when they came over or the console that's better if you have family (siblings or have kids). Game consoles usually sit in the living/family room where there's a bunch of seats and often commercials and on TV people are always playing together. But nowadays most games don't actually let you use the console to actual play together. You use it to play by yourself in the room. Then there's the influential kid YouTubers who all play with their family and stuff. they probably influence a lot of kids to buy Switches; that's how the kids I know know about the Switch and its games.
There's a huge audience that I call the "casual-hardcore" who play non-casual games but they are more likely to play the super popular stuff like COD and GTA than something like Gears. It's going to be pretty hard to focus on building an online hit without a solid install base to make gain good traction. These people probably aren't going to dish out hundreds of dollars to play some random RPG or openworld game if they already have a PlayStation or want one. A lot of people are also probably aren't going to choose a console over having slightly better graphics either. This is anecdotal but I know a lot of people who buy switches simply because it's fun at parties. I think Microsoft should try to find new value in wherever they can because simply trying to make the better exclusives is a very hard battle to fight. I think it's a better more distinguishing point to say that if you have friends/family Xbox has more multiplayer (local) games than it is to say Xbox game studio's has x,y,z,a,b over PlayStation studio's e,g,b,d,f.
