The main distinction is that Flight Simulator was confirmed for next generation Xbox consoles before the game released on PC where as with TLOU, it was never announced for PS4. None of the consoles were released when the respective games released on PC and PS3 but Flight Simulator was always confirmed for next generation Xbox consoles. The only console it wasn't confirmed for was Xbox One for obvious reasons. Plus, unlike TLOU which obviously ran on PS3, there's no way Flight simulator was going to run on a base 2013 Xbox One. Plus, it wasn't remastered or anything for Xbox Series. It was basically a straight port from PC which makes sense since both Xbox Series X/S have x86 architecture which basically makes them both form factor PC's anyway. I would agree if Flight Simulator was released on Xbox One and then remastered for Xbox Series a few years later but it was a straight port from PC. Took 11 months mainly due to make sure it was optimized, playable and configured for the consoles.
Microsoft was seriously considering shutting down Xbox as a gaming division and platform in 2017. And with only 5 studios, not much point in keeping it alive if they weren't going to be all in with gaming and Xbox. Outside of NA, they'll always be third place but I see that a positive because as long as they're making a lot of revenue and profit which they are and will even more so after ABK goes through, there's a better chance of getting more out of Microsoft and Xbox. They screw up repeatedly being in 3rd place so imagine if they were 1st or even 2nd. They need to keep taking the hits and lumps because it's the only way for them to truly get better in the long term.
I see them distinguishing themselves by having a different business and pricing model being Game Pass. I don't ever see Mixed Reality or Virtual Reality doing anything when it comes to console gaming because like game streaming, it's not how people want to play their games and consumer their content. For VR specifically, I think Microsoft would be far better suited to get Oculus Rift to be compatible with Series consoles as opposed to making their own VR headset which I don't want Microsoft to do at all. The Minecraft demo looked amazing but it was also just a demo similar to Unreal Engine 5 three years ago or the Matrix demo. It demonstrates of what can be done but not exactly what you're going to be getting game wise.