"The Microsoft device has led the charge for the console as a fully realized media center."
You mean what the PS3 did last generation?
"However, Microsoft is positioning itself for the future, with powerful hardware like the One X and the company's aggressive acquisition of game studios."
The XOX won't be relevant in the future; it will be outdated as soon as the next generation of consoles releases. And while studio acquisitions are good... that does nothing for 2018, which is the year-in-review this is supposed to be about.
"Sure, there have been some missteps along the way, as evidenced by Kinect and the puzzling dearth of first-party titles."
Those missteps are the reason none of this other stuff is strong enough to matter.
"The console and its new iterations have enjoyed immense success with backward compatibility, leveraging this feature into a potentially industry-changing subscription service."
Immense success? Their sales have hardly moved despite the availability of BOTH features. The Xbox faithful tout them, but the console is still being outpaced by its competitors, and no numbers from the parent company means no way to confirm how successful these services really are.