Lets be fair, Microsoft entered this industry by innovating their way in.
The original XBOX having built in Ethernet and a HDD meant that they were first to establish a proper online service and then they built out the whole infrastructure to enable voice chat and social. Reminder that this was before Skype, Facebook, and even Myspace! They essentially built the first real online voice communication and social network.
Contrast this with the PS2 which was a bolted on online experience. You had to buy separate equipment to connect it, the support was limited to a handful of games and each game had their own custom infrastructure. It was a legacy console in this regard.
They followed it up with the 360 adding a whole layer to the gameplay with things like achievements, expanding the console to include things like Netflix while further solidifying their online offerings. The 360 helped make online video streaming into what it is today. It allowed people to spend more time doing things with their "box" when they didn't want to play video games. Then came the massive support for indie titles and the app store. Wanted to play a classic? You can in minutes with the app store. (Sony eventually copied this but MSFT was first out of the gate).
Sure Microsoft fumbled multiple times, which company hasn't? You can list numerous examples where Sony, Nintendo, and Sega have messed up. But Microsoft has definitely innovated and helped move the industry forward.
You can make the same argument with Sony then. Dreamcast didn't have DVD because they started development after the Saturn which was an era where DVD wasn't available in a mass market and Sony having "innovated" by relying on their patent portfolio and that they just happen to be partners in the DVD consortium.
PS1, you could play your CD musics and play games
PS2, you could play your DVD movies, play games and play online!
PSP, you could browse the internet, watch movies, listen to music and play games on the go!
Sony kept innovating and that helped the industry move forward
Now they are exploring with VR..
What the competition been doing during that time other than complain?
You see that kind of similar success with Nintendo and the Wii, they innovated and attracted the mass, and they repeated it with the Switch
Sony gets lot of unfair criticism in my opinion, Apple did the same with the iPhone, they offered something unique that people wanted
If Microsoft wants to turn the table, they'll have to offer something interesting, 2 console with different specs just aint it