My belief SOny should have passed, they forced MSFT hands and had them to jump into a generationless approach to the market. On such market my belief is that MSFT has a fundamental edge on them, MSFT got some Xbox games running on the 360, and 360 games on the one, etc. they also have the PC platform which may even allow them to have a tier approach to the market later on.
Now they are not completely out of luck as I think the executive at MSFT are not good they are in reaction vs pushing a vision. They reacted to the pro so they will offer something more powerful than Sony but still bound to same IPs and limitation and a year later.
imho VR not being worse them fractioning their user base was predictable and I think that offering a redesigned, cheaper yet slightly superior Slim design should have been the priority to really grow the market in some emergent countries. The extra money asked for the pro may help maintaining revenues or (somehow) artificially faking some revenues growth but it might not prove a good strategy in the longer run.