I think MS is doing the best they could have within a year. Hoping they stay hungry and desperate, that's the best MS.
Yeah they've turned a lot around. And we recently got positive Xbox sales news from both UK and China.
Not to go "there" again but I wonder if China could be a natural market for them given alleged China-Japan historical animosity. If so it could be a real boon for them from left field this gen, but there's a long way to go to say that obviously.
The biggest factor working against them is going to be that hardware currently. The only question is can they "succeed" in spite of it, minimizing it and trying to make it fade as an issue as much as possible.
Also as I point out "succeed" can still include being substantially outsold by Playstation, imo.
Regardless, I have seen it mentioned a few times that MS has been hiring console industrial engineers of late. So either a (more likely) slim revision of X1 is already even in the works, or even early work on another console iteration.