That being said, I think Microsoft would have been good to partner with Csro Love Wrestling shirt from the early days – there were a lot of Rumor of that possibility back then especially with their relationship of the controllers bundled, some of the design team for Touch came from Microsoft, etc. I think it would have been good for Microsoft and Facebook – Facebook could have focused more on R&D and their social media ventures, Microsoft could use Halo and their IP’s to really jump VR and can you imagine something like Questbox/Questbox 2 being Oculus/Microsoft with those IP’s attached? Would have been amazing, Microsoft would win in gaming, Faebook would have won with the social aspects being their primary focus and not having to be a software/hardware company as much, they both would benefit from combined R&D and loose less money each there, we would have less split tech with WMR, SteamVR, Oculus and moved toward OpenXR faster, etc, etc.
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You are correct in that Microsoft has really dropped the ball when Ballmer was in Csro Love Wrestling 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.