I would kill off the Xbox console, they go all-in into a PC game store and build my services around that.
That would be abandoning third party and gold membership revenue. With Windows being an open platform it doesn't have as much potential for gaming profits as a closed platform like consoles.
Not if they can get the "Xbox games store" to be is big as steam. MS is dropping the ball here as they did with smartphone OS's....
Its a recurring habit of MS as a company, they go in half-cocked on most things. If MS did what they were always supposed to do? Android wouldn't even exist today. If they did what they were supposed to do, Steam wouldn't exist either. Those are two humongous fuckups right there. And the fact that Epic can do what they are doing with their game store currently is proof that there was still a chance for MS to at least right one of those two things.
MS having their own Game store like steam/epic isn't abandoning third party revenues. If anything it secures it. They can even offer third party pubs better deals than steam or epic offers and they have the resources (and means since they own windows) to build out a feature set that neither steam/epic can match. Especially if that feature set includes Game pass/X cloud.