MS is in the position they are because they don't have many quality first party studios to makes games like Nintendo or Sony. It wasn't much of an issue for them last gen, because 360 was a better designed system than the PS3. 360 was the standard system games were developed for, then ported over to PS3 and 360 versions were superior. Developers also found better sales numbers on 360 and due to the system being easier to develop for than PS3's cell processor, developers wanted to and preferred to make games first and foremost for 360. (I don't think this happened just because, I did read that in the early days of 360 MS "bribed" devs by cutting them million dollar cheques to make games for 360)
Sony released a better, more affordable, easier to program for system this time and it caught up to Microsoft.
Xbox one x is their attempt to remedy the problem. Instead of investing in first party and original new IP games (which doesn't happen overnight) a new beefed up version of xbox that is easier to develop for was their bet. It's their strategic play and time will tell if it works out.
I think for MS they are banking hard on xbox one x. From what we've heard, developers love the new hardware. It's easy to port games, easy to get games running with nice performance, the dev kit is supposed to be amazing. Basically instead of creating their own studios, they are attempting to woo the developers back! (By giving them a platform that makes it easy for them to create great games that shine)
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