Having given some more thought to this debacle and lets call it for what it is... its a debacle. MS will never admit defeat in this contest. It is just not going to happen and I can see their egos making this even more of a long drawn out ending.... but I will say this... it is fixable to a degree.
First, they need to apologize. Seriously, they have let their "core" fans down. Broken promises, delays, silence on key issues and absolute panic when rumors rise all require a huge apology. It will only go so far, but its a start.
Next, is Gamepass. It is here to stay at this point. Dropping it would cause an outrage. SO they must live with this model they created at least until next generation if they must.
Third, is recouping some of their spending back. I would announce that they will be putting many of their "exclusives" on other consoles. The money this would generate would buy them time and build their brand with loyal followers of other consoles.
Fourth, a clear path going forward is needed. Not some bull shit thrown together power point with a years worth of season pass type shit, but a real gameplan. A promise that they will continue to put games out for xbox as well as the others. They need to give a list of projects they are working on, and a bit of information on next generation if they are going this route. It is never to early to start building the foundation for the next gen.
Finally, they need to rethink the approach they have and realize that gamers just want good games. Nobody can guarantee what game is going to be the next fortnite. Instead, they need to invest in companies that are rethinking how you approach the typical gamer.
Nintendo used the switch as the "new" indie handheld. If you wanted to play cool, cheap indie games while still getting your NINTENDO proper, you could and this took off. Imagine the switch without the abundance of indie titles.
Sony, is sony.. they put their head down and keep putting out titles that they know will do well, because they have the infrastructure to keep their fingers on the pulse of gamers.
MS only cares about money and how they can buy the competition... that is the wrong view. I said it the other day.... its actually a disservice to the gamer/ fan. I want people that want to make games, not people that want to buy people that make games only to mismanage them.