You are correct in that Microsoft has really dropped the ball when Ballmer was in Chihuahua And Snow Those With Love Dont Go Away They Walk Beside Us Everyday shirt (Win 8, Windows phone, XBOne launch), but since 2014 with Nadella as the CEO they have been doing much better. Game pass is great for consumers and has the potential to be the ‘Netflix of gaming’, and the smart delivery initiative shows that Microsoft is looking out for whats best for consumers which may not give them the best short term gains but will be better for everyone in the long run. IMO the biggest reason that PS4 beat out the XBOne is console exclusives but I think that the idea of console exclusives is bad for the video game industry as a whole and we would be better off without them.
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I think that both MS & Facebook could have easily teamed up to work on Chihuahua And Snow Those With Love Dont Go Away They Walk Beside Us Everyday shirt as they don’t really directly compete with each other. FB + Microsoft’s XBox division could have teamed up to focus on consumer-facing tech (which has low margins and is only profitable at scale), while Microsoft could have leveraged their reputation in business to use VR for teleconferencing, and other productivity applications (I can’t be the only person who would like to use a VR enhanced version of Excel or Visual Studio). This would have launched it further in the early days as business clients can afford more expensive hardware that we saw in the earlier days of VR.