Only problem with this is, xbox gamers didn't buy the originals when they came out. This why MS has not green lit any sequels. You cant make a sequel to something if the first one sold poorly.
I don't think it's anywhere near as cut and dry as you appear to suggest. I find this narrative of Xbox gamers only buying particular genres of games rather frustrating and narrow-minded. It frankly sucks to see it persist in 2019.
Xbox gamers buy lots of games. Of all kinds of genres.
It's actually quite rare for a Microsoft first party game to
bomb.
It's unfortunately not all that rare for them to fail to meet their high expectations and then shuffle off into obscurity because Microsoft has had this attitude of "bona fide hit or die" since the days of the original Xbox.
That attitude was probably at its worst during 360 era when MS had massive hits in Halo, Forza, Gears and Fable, which in turn inflated their expectations of all first party games across the board. Even games titles like Kameo and Perfect Dark Zero that
sold really well still didn't get sequels because their success paled in comparison to that off Microsoft's heaviest hitters.
In the case of Quantum Break, I think the story there is that they had a 10 year relationship with Remedy that resulted in only 2 games to mild success and only slightly above average critical reception for one. I don't think working relationship was worth continuing investment for Microsoft.
Sunset Overdrive had a huge marketing campaign and the game wasn't a smash hit so Microsoft didn't want to or were perhaps dragging their feet in funding a sequel, during which time Sony got Insomniac on board for Spider-Man. There's no Sunset Overdrive 2 without Insomniac, so even if Microsoft did decide to fund it after all, it was likely too late.
Lastly, in regards to ReCore,
MS believe in that IP. This coming from Shannon Loftis who was Studio Head at Microsoft Global Publishing at the time (their second party studio basically)
Announcing ReCore: Definitive Edition was a little bit of a signal to people that got into the world of Far Eden and fell in love with these characters that we believe that that's an IP with a lot of legs.
I would assume the trouble with ReCore is that Armature moved on to new projects shortly after the game first came out (including their work on Fortnite, which I imagine brought them tons of money) and Comcept was acquired by Level-5, leaving no other feasible studio to work on it. I don't think a ReCore 2 is a definitive no, I think that's an IP they'll bring back if they can find the right team for it.
To reiterate and draw the bottom line: Xbox gamers buy lots of games of all kinds of genres. It's not a matter of genres not having an appeal, it's a matter of Microsoft's standards and definitions of success. Hopefully now, going into the future, through Game Pass and PC releases (and occasionally Switch), Microsoft will return to some of these properties that didn't meet their expectations in the past as well continue to fund new IP.