Xbox has ostensibly been dead since 2013. It died when Sony declared at e3 that the PS4 could share games and essentially utilize used games whereas at the time the Xbox was focused on DRM. A few days later Sony would release what is essentially their magnum opus in The Last of Us.
Microsoft launched GamePass as a means to stay relevant in 2017, but GamePass is a destroyer of value and entirely unsustainable. The model doesn't work in the video game industry. We tried to tell you all that, but no one wanted to listen.
That Xbox sales have dried up so drastically across the globe explains why Microsoft no longer is concerned with riling up the Xbox Community. There isn't much of a community left. Starfield was released and people still didn't buy the XBS. They dropped the price of the XSX to 350 and people still didn't buy it. There is nothing left for them to do and no more promises Spencer can tell Nadella.
Because Xbox consoles aren't selling, GamePass subscribership is flat, to the point where it'll likely diminish in a few months/quarters. It's why they no longer give GamePass Subscriber numbers.
The deals to buy Bethesda and ABK were last-ditch efforts to save Xbox, but they've done the opposite. They're acting as a ballast or an anchor forcing Microsoft's hand with Xbox which they've largely subsidized for 20+ years. The subsidy has run out with the sales decline of Xbox and the flat subscribership of GamePass. This is the only route forward.
For over a decade it's been obvious that Xbox was in trouble, but no one wanted to hear it because it was dismissed as console warring. The reality is we're nearing the point where this can't be white washed and Microsoft will take the future steps
- Keep revenue and margins high by selling games on PS5 and Switch (2)
- Get streaming up and running across devices and release a streaming device to help facilitate that future
- Encourage GamePass via streaming and PC
- Maybe even sell accessories on PS5 and Switch (2)
- Maybe they try to maintain the Xbox ecosystem to some extent, it doesn't make sense to give it up, but I'd be stunned if there is future hardware. Xbox Live will live on via PC and streaming.