It's a challenge, but it's not their biggest challenge.
For example, Xbox One is a terrible name. It came from the much maligned "all-in-one" focus but it stuck and people don't really think about it in that context anymore so it worked out fine for them. Microsoft can call their next console whatever name they want and at some point, people will adjust to it. It's fine. Xbox Infinite sounds good to me. It matches Halo, they could do it with their other games like Forza Infinite, Gears Infinite - like how Nintendo sometimes names their games based on the console.
Their greater challenge is making sure they put out world-class masterpiece games, and as consistently as Nintendo and Sony. Also not going overboard on the cloud streaming stuff when they do their proper next-gen reveal, or Sony might take the "simplicity of physical discs" argument and use it against them again.