People vote with their wallet. MS was going to tie physical media to a single console, with no options to sell your game, or take it to a friends house. Add to that the always watching you Kinect and people flocked to the PS4 and PC. I don’t know if MS can recover the Xbox brand after those mistakes.
Sony and MS went x86, because it just makes more sense to not invest tons of money into custom hardware. And the added costs of creating custom dev kits for custom hardware was costly and held back 3rd party developers.