I just want to know what Microsoft's next system will be called since they have Xbox, Xbox 360...what is next?
As for what Microsoft needs to do now, I don't think it is a given that they need to do anything. They have a strong core market that continues to expand, and continues to support both first and third party games.
Since, they are still in second place in this generation, and I am sure they are either profitable or becoming profitable with Xbox 360, they really don't need to do anything.