They have the next best thing. Hololens, but somehow they have failed to take the consumer space by storm with it, they are happy to sell it to enterprises n thats abt it.
Well it's not ready for consumers. But I still feel they won't do it right. The hardware is just one side of things. It's why Apps are required to sell phones. In the beginning default apps were the seller. Giving us hardware without anything made no sense. But now you may see default apps as just an expectation, back then those few apps were a huge deal, especially on a phone.
Nintendo sells consoles with games. People wouldn't buy Nintendo if there was no games like Zelda or any other cool exclusives.
MS needs to not only perfect the hardware but partner with the right software developers to bring the consumers a solution that is a must have. Building an app ecosystem in the store right now sounds cool, but apps are apps. They will be expected on the hololens.
What Apple will do is likely come out with a better design, but also they will have a crazy game like Pokemon Go take advantage of it. It doesn't matter if MS's hardware is better, everyone will be raving about how well the hardware and Pokemon Go play together and how revolutionary it is. Meanwhile MS will have some overly technical game where you shoot stuff coming out of your walls.
My guess is Apple has already secured Niantic for pokemon Go on their future AR glasses. They are sinking so much money into the AR R&D. They have huge teams all working together. I believe MS will fail to see that part of selling AR to people. They will likely do something like a halo game which is just not going to be as popular. Heck, I don't care for Halo. In fact, I have Halo 5 and after a bit of playing I just stopped. I never liked the games for some reason.
If they want to catch a huge audience with it they need:
-A great multiplayer experience that they can create together with Nintendo using games like Mario for Mario party and smash bros.
-An exclusive game that brings the hardcore geek gamers like Half life 3.
-A game like pokemon Go to capture the rest of the world.
These 3 things and great hardware would create a revolution.