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Lack of Power. Dealer says transmission? 850

My 94 850 Turbo has over about a couple of weeks lost power & I had the Lambda Light on. The turbo meter hardly ever makes it even 1/4 of the way into the boost zone, whereas it used to get way up. Dealer said Oxygen sensor & replaced it, no change in performance!
Now he says it is the transmission is "Lazy" and is popssibly done for. Is there such a thing as Lazy transmission? Transmission does not shift up until rpm are quite high, but it feels to me that this is because the darn engine is not getting the beast up to speed.
Dealer also says there is a code for the Mass Airflow meter. I thought that when the MAF meter failed, the performance became eratic, but this is very consistent low power. Before I fork out big $ for transmission (or dump the car)I would like to be sure the engine can deliver something.






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