It's a big blow to the Xbox line up. Honestly there's a serious lack of single player story driven games. Well, exclusive ones at least. Everything is literally MP focused. Forza 7, State of Decay, Sea of Thieves, Crackdown...(and I've heard Crackdown isn't going too hot either, though nothing as bad as this).
Unless they have a bunch of first party studios secretly tucked away somewhere (which they don't that I know of), I genuinely struggle to think of what surprises they could have at E3 *as of right now*. Halo 6 is to be expected, and I don't see publishers playing ball much anymore with 3rd party exclusives unless Microsoft gives the Xbox division a huge budget to throw cash around, which I highly doubt. Their major first party IP are on a decline with Halo doing less than before and Gears 4 not selling that well at all relatively speaking (not good enough to sustain a huge studio with that many workers and budget).
What's happening now is the exact opposite of what Xbox fans seemed to want out of a Phil spencer leadership.
I remember when he became head of Xbox and everyone was saying how there'll be tons of new games, but they're still coasting on announcements from 2013-2014 and in that time, games have been cancelled, multiple studios closed including Lionhead...
As a big Xbox fan since day one, I'm not very hopeful for the future. Scorpio won't do anything without software to push it heavily.