Gamepass is a sticking plaster at the moment, albeit a good one. Its given Microsoft a platform to at least stabilise the brand a little. The acquisition probably makes sense for the bean counters for long term ROI.
For me, coming primarily from the 360 generation, my opinion is that new IPs are fine (or adding them to the library). But I'd like to see Microsoft prove they have what it takes with their existing IPs first. Gears needs repairing. The technical quality of the games is fine but they just lost the ability to capture people after 3/judgement. Halo needs a proper reboot, small scale and personal like Reach to re-establish the persona of Master Chief.
Horizon is OK, but I think they need to pick a locale that is more inspiring next time. Russia, Japan or Canada for example. Basically they need to start putting out games with real quality.
To be fair, they have improved a lot if we're being objective. And if you think of games/studios like Hellblade II, Plague Tale they are starting to build up that talent pool to complement the likes of the Coalition, Bethesda etc.
Just last week we were reading about how Sony had to tell Insomniac to knuckle down because the game wasn't going to meet the quality requirements for a first party title. At the moment I think Microsoft are missing that. And it's the difference as to why Sucker Punch can put out Ghost of Tsushima but Microsoft released Redfall.
That's not to say everything put out has been a bad game - far from it - but right now, my perception is Microsoft have a very fractured approach to game/studio development and IP/quality management. And just when you think this next title will showcase that commitment, they most often fall a little short. They have all the tools and resources they need, but they do need to find someone in that middle layer to realise the next step imo.
And I say that as someone who has spent most gaming time this gen on the Series X.