I've said it multiple times over a long time.
1. Brand rot via not marketing in many places other platforms forced themselves into through grit, and failing basic standards in many countries Xbox officially claims to already be in.
Ask any tier 3 country and they will tell you many times they can't even get basic support in their own languages let alone the treatment the English world gets, let alone any other kind of support outside of maybe being able to buy the console (although most times not even being able to do that)
The fact that priority is so skewed towards the US and the UK absolutely hurts Xboxs reach and it's not as if they simply can't do it. They sold 1.5 million consoles in Japan off of aggressive marketing and getting devs to make Japanese games on 360, yet now they claim they can't even support a single studio? When they themselves defunded and shut down a big portion of the Japanese Xbox branch years ago? Don't buy it.
2. Dev rot letting many of their own studios operate as inefficiently as possible and go through as many problems as possible.
343 is just the most vocal public issue. Rare had been languishing for many years without much to show for themselves and barely put out sea of thieves. If Japan studio had operated like that they would have been canned years before.
Where as it seems besides the coalition and turn 10, none of the devs MS has owned for decades pre buying spree even exist and anything we have seen of the devs they have bought post 2018 has been vaporware that has not been seen beyond a single trailer.
To think they would be in an even worse position without the Bethesda aqusition they just made a few years ago is mind boggling. Why has the initiative just been allowed to go on without showing literally anything to the public of note? Why has the coalition been the one forced to help other dev studios with projects when they are one of the only ones consistently putting out games?
Why haven't many of these teams been forced back on track, split up, refunded and restaffed years ago? Sony has their teams working double duty on projects separating themselves into smaller teams to churn out more content. Why isn't MS doing that?
I can only imagine what this year would look like for them if they didn't own Bethesda. And that isn't a justification for the aqusition of Bethesda but an condemnation of Xbox studios management up until that point and still today. Even with all those studios in 2018 it took buying a pub of that size to even get any content when it was content that would be on the market regardless. Just not exclusive.
Don't say MS cant fix anything I have mentioned here. They are a trillion dollar software company, worth 10 times as much as their most direct competitor in the gaming space. They make more money just existing for a few months than Sony or Nintendo do an entire year. They have the resources. The problems are within