4) In order for Microsoft to be #1, they need to beat both Sony and Nintendo. For some reason, Microsoft doesn't seem to 'get' that their concern should be the guy coming from the back (in this case, Nintendo) and not the guy in first place.
I see a decent number of people saying this here on these forums and I'll never understand it to be honest. People can go in depth on the (mostly true) issues that Microsoft has in the home console space but brush off Nintendo's larger issues and/or still feel that Nintendo has a great chance to make a major comeback even though the brand hasn't been known for online gaming or core third party support in many years -- two qualities that have GREATLY helped the sales of both the Xbox One and PS4.
Nintendo is going for a different type of console with the Switch just so they can stay relevant in the home console gaming space period. Xbox doesn't have that problem simply due to third party support alone. Xbox One is relevant in some territories; Wii U is relevant no where.