They want to be a cloud gaming provider and sell Xbox fire TV sticks instead of consoles, with controllers that connect directly to the azure server running their games. Why do you think Nvidia and the UK weren’t happy with Microsoft a few years ago and they made so many deals with cloud gaming providers like boosteroid and GeForce now?
Microsoft turned every Windows PC into an Xbox overnight with XCloud and they had little to no overhead costs. That’s where their business is right now, cloud and AI, not gaming, Xbox will take a backseat and I’m going to bet we will see them transition from a console maker to simply publisher that conveniently sells a cloud TV stick that can play games.