Basically everything Microsoft (deservedly) got shit for with the Xbox One, and which their reputation never recovered from, is bog-standard practice on consoles and plenty of games now.
I can't even remember what MS did or didn't do in that keynote. Are they really hurting in this gen? I think their success vs PS is all about (lack of) good platform exclusives along with how online gaming got more siloed and less communal. Halo 3 won them the north american market and it wouldn't have been the same without all chat and everyone still having a working mic at that point in the 360s life.
Xbox One was originally going to require frequent online check ins, I think daily or weekly, games on disc were going to tie themselves to your account and publishers could choose whether or not you could resell them at select retailers or share them with your friends, IIRC you could share a game one time with a friend. They also didn't focus on games when showing it off and it was priced $100 higher than PS4 despite being weaker because of the bundled Kinect nobody wanted.
They are not doing super amazing this gen. Reports have them selling 1/3rd the units of PlayStation 5, Game Pass has stalled, they apparently used a JIT manufacturing setup and so were much more affected by the component shortage, so a console that was $500 at launch is now $800.
Funnily enough, because they put in serials into Xbox One games for tracking they did recently launch a really cool disc to digital service that gives the best benefits of physical and digital.
The 360 was winning hard early in the 7th console generation, between the success of Xbox Live/popularity of Halo 3 and Sony's $500 starting price for the PS3 that made the Xbox's $300 starting price look great.
But later on in the generation, Sony made big price cuts and went hard putting out very good exclusive games that people bought systems for. By the end, they beat out Microsoft in sales.
Then the lead-up to the Xbox One launch was such a PR disaster which the another comment covered. The PS4 continued getting great exclusive games while Microsoft's big IPs like Halo and Gears of War more or less fell out of relevancy if not had their brand destroyed by new entries that didn't impress fans. They spent way too much time and effort trying to make the Kinect the future of Xbox in hopes of replicating Nintendo's success with the Wii, years after the novelty of motion controls stopped impressing anyone.
The unfortunate thing is they dropped the ball so hard that Sony basically stopped trying in the latest generation. Sony is pissing people off left and right but they're still winning because they have no direct competition (Nintendo has been off doing their own thing since the Wii)
