I think Microsoft's next-gen strategy is potentially brilliant.
You have two next-gen SKUs from Microsoft basically targeted at two levels of performance, 1080p displays (Lockhart) and 4K Displays (Anaconda).
The reality is the vast majority of households still have 1080p displays, so why not take advantage of this fact by offering a cheaper 1080p solution that is still a true next-gen leap over previous consoles.
A next-gen console with a 6+ Tflop GPU and Zen 2 CPU that targets 1080p displays would blow away the Xbox One X. Microsoft should be able to get said console down in the $349,99 range which could potentially give them a pretty big advantage going into Next-Gen.
Now I still don't think this alone is enough for Microsoft to outsell PS5 WW, but it puts them in a much better position going into next-gen.
I myself prefer Sony consoles and that really comes down to Sony exclusives. With all these new studio acquisitions by Microsoft hopefully they can improve their 1st party output come next-gen. With better pricing and more exclusives Microsoft is poised to have better success next-generation.