This is about getting Xbox gamers back, I read a book about the 360 development and they knew then you won over the hardcore gamers and the rest followed, they forgot that for Xbox One and diluted their message.
Except that this time the new console will not replace 8-year old hardware dozen times less powerful , literally from the previous era, that everybody wants to leave and jump on something new, exciting with new games etc.
When X360 was unveiled and short after, games like Gears of War made lots of people want to switch.
But now, 3 years in, they try to tease with someting undeniably powerful, but is it as appealing as previous propositions ?
Knowing that new games just
may be developed to fully utilize full power ? Knowing You need to leave a lot of bought stuff behind when You switch (from PS) ?
Right now that we know all the future machines will be compatible with the old games (well, maybe not 10-15 years old like with Windows PCs) , power is not a deciding factor anymore. Games will play more or less the same. Software catalogue You own becomes more and more important. Hardware iterations will make it more and more appealing by small steps and the obvious effect on us is - we will spend more money (on hardware) than before.
And I don't know what MS can do to convince people to abandon their Playstation stuff and switch back.
In this sense MS is out of luck, they will have to try very hard. They need more people in their ecosystem, they try to open it for PC gamers but there is just a handful of games that are new to them, and I doubt they want to replace Steam with something different. Especially that console game prices are ridiculous compared to same PC games that play better.