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JRPGfan said:

Apparently, its 52% PS5, 31% PS4, 17% Xbox Series/Xbox One.
Thats over 83% of retail sales are on Sony side.

Gamepass, litterally killing retail sales for this title on xbox side.
Makes you wonder if the trend continues, theres still value in retail stores, selling xbox consoles+games.
You could imagine it reaches a point, where the profits for the retail side, are so small, its not worth it (because gamepass took it all from them).

So as has been said there's a lot we don't know about the MS deal and also the digital sales to say anything concrete about profitability for Square Enix. 

As for profitability for retailers, it's no doubt that they're stuck in an unenviable situation. There is a reason that all those hedge funds opened so many short positions on Gamestop. But they'll absolutely keep stocking consoles of all descriptions for as long as they exist, because:

1) they bring people to the door of your shop. 

2) Retailers make a tiny commission on consoles really. They love to sell them to you bundled with all sorts of hats, extra peripherals to actually make some money from the operation. citation: Xbox Series X and Xbox Series S Consoles | GAME

3) Insofar as retailers have any strategic market power at all, they'd rather sell you the console than lose the business to another retailer.