We saw what happened when Microsoft got a whiff of success in the 360 era. The Xbox One was anti-gamer and anti-consumer, and it didn’t happen by accident

That's not an accident. That's exactly what happens in a functioning market, and it's why it's not desirable for Microsoft to fall too far behind, even if it was by their own mismanagement. The things they'd need to produce to compete with Sony at this point would be produced on something like a 5-7 year lag, so even if they had the perfect plan right now, it wouldn't manifest until 2030.