Remember when nintendo asked sony to develop playstation, but scrapped it? Then sony was entering the console market and everybody was shitting that it doesnt have a mascot hero like sega/nintendo and sony and it would be doom for them?
It is my speculation that MS is working towards gaming where it is not limited by local hardware but tapping into computational power of AI through the CLOUD. Remember cloud gaming? Both AI and cloud is the future where developers can tap into almost unlimited computational power. A traditional console box form factor is going to be dead, just 2-3 generations more at best. Xbox branding-marketing is dead, but gaming isnt. We will see realism at a much-accelerated pace with MS.
ARM is also the future for mobile gaming with 5G connection and soon 6G.
OEMS can also contribute by releasing their own proprietary technology that can offer unique game experiences such as: controllers, VR headsets, Augmented Reality, etc.
The possibilities are all there, and being locked into comparing to Sony or even Nintendo is just constraining yourself. Things have changed and evolved drastically.
I think the future looks bright. Something must die in order to give birth to something new, otherwise it's going to drag and drown you.