What went so horribly wrong?

https://www.ign.com/articles/microsoft-confirms-first-party-next-generation-xbox-consoles-announces-deal-with-amd-and-promises-full-backwards-compatibility-with-your-existing-xbox-library

Microsoft confirms next gen consoles, announces deal with AMD, full backwards compatibility, integration with Steam, EPIC Store, and GOG; says it will be more like a PC than an Xbox and work closely with Windows to make it the best platform for gaming.
Targeted release 2027.