Just make good games. Invest in exclusives, whether timed or permanent. Enter in partnerships with studios to develop games for you, whether they're big or small.
I find Phil's stance of "even if you make great games people won't come" absurd and defeatist. You gotta give people a reason to buy your console and stick to it, and that's only done with great exclusives that release often. There's a reason why people remember the 360 fondly, and it's because they had great games coming out constantly in all genres, from all countries (at least until they started to focus on Kinect too much).
Of course, I don't have any of the data MS has. I'm just talking as an outsider. Maybe they're doomed with every decision they've done since they started working on One, but so many of these rumors seem so bad.
It's not the demise of Xbox, but it'd be a waste of investment time and money. You gotta add another device for developers to port to, on top of both Series and the next-gen one. That's a mess for developers that already dread having to work with the Series S. And how would they get a playerbase outside of their current Xbox audience if they can't offer anything the Switch 2 or the Steam Deck has, given that PC ports are not gonna stop, and Project Latitude is a go? It just seems like they'd see Switch being successful while not understanding why Switch is selling like that.