I think people are too hard on MS overall, but it's true that they've released far too many 8.5s and not enough 9s. I do think 9s drive hardware sales still in a way that 8.5s don't.
I'll flesh out my thoughts in the following way: Sony brings out some games, not many, but enough, that are better than the best 3rd party games like Elden Ring, Hogwarts, Cyberpunk. MS games, with a few exceptions like Ori and Forza Horizon, are a hair under the best 3rd party.
The reality is gamers want a few Sony 9.3s to go with their 3rd party 9s, more than they want a lot of MS 8.5s to go with their 3rd party 9s.
Yet the crazy value of GamePass is enough for many to forgo PS and get an Xbox.
If Hellblade 2, Fable, Gears 6, Indiana Jones, and Perfect Dark are 9s, they'll start selling more hardware and GP subs. That's what they need. Starfield could evolve into a 9 over time as well.