Microsoft went flat for a decade after their antitrust trial. They lost many markets where they had significant footholds, struggled to attract and retain top talent, and struggled to enter new markets.
They kept making money from Windows, Office, etc. But the tech industry exploded in growth around them, leaving them behind in many ways (technologically, financially, culturally).
The success of Xbox resulted from what was essentially an internal con job. It survived to launch and succeeded because the team responsible managed to keep a straight face about several important lies about what Xbox would be to the rest of the company's leadership and BG himself.
They kept making money from Windows, Office, etc. But the tech industry exploded in growth around them, leaving them behind in many ways (technologically, financially, culturally).