Xbox could easily surpass PlayStation if Microsoft actually bothered to leverage the intellectual properties they’ve developed and acquired to start pumping out exclusives. If they shat out a slew of console exclusives like new Crash Bandicoot, Spyro, StarCraft, Elder Scrolls, Doom, Pillars of Eternity, Perfect Dark, Banjo-Kazooie, Jet Force Gemini, Conker, Gears, Halo, etc games, and actually ensured they were competently made, Sony wouldn’t have a leg to stand on.

making good games is difficult. They've tried to ensure their recent games were competently made, and failed. You don't just get good games by thowing money at it.

In addition, they need to actually make money at some point, they could make all those games but they would lose money on every single one, because Xbox doesn't get game sales anymore thanks to Game Pass.

So Microsoft needs to make just enough that is cheap enough to make Game Pass make them profit.