I don't think it's over, but it's not a good look to be down that bad in Europe. There are still some strong markets in the EU like Germany, France, Italy, Netherlands, and Spain. So, I don't think it's wise to overlook EU market because that's a lot of customers to miss out on. I think due to brexit the real numbers of Microsoft being weak in EU is getting exposed big time. I think Microsoft needs to stop thinking of America first because it's odd when you look at leadership it's all Redmond, Wahsington. I think that's the reason why they're in the mess they're in because they should at least have some leaders from UK, Europe, and possibly Japan. It's funny that Microsoft was in it's best position when they had somebody outside of Redmon steering the ship because Peter Moore era was def the best for Microsoft imo.
If I am Phil or even Satya I would start looking at getting leaders and create divisions such as Xbox Europe to improve localization in market in weaker territories.
Lastly, I don't think xbox fans should downplay this because having weak market share can result in indies and AAs skipping platforms due to a low install base. Also, power of a console doesn't matter when devs will always priortize for the higher install base.