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VAMatt said:

The problem I see with this analysis is that while the OP correctly points out that we often view these things from a Western perspective and that clouds our judgment, it makes a similar mistake of viewing things through a lens of hardware ownership.

You know what takes up less space than a Series S? The cell phone or laptop that you already own. You know what cost less than a series S? Buying nothing but a controller. And it appears to me that that's what Microsoft is banking on taking hold in the developing world. They are working on cloud gaming. They've done it in a much more intelligent way than Google, in that they have started it as a secondary option for people that are already in the Xbox ecosystem. But, it is very clear that streaming is coming on, and Microsoft is at the forefront of that.  I imagine over the next five years there will be a lot of people subscribed to Gamepass that do not own an Xbox or a gaming rig.

So, while I won't say there's zero chance that the Series S ends up as the best selling console, I will say that I don't think Microsoft is trying to make that happen. They're trying to make XCloud the most popular way to play games, thereby eliminating the need for dedicated gaming hardware (beyond a controller).

Further, since Nintendo and Sony both still seem to be focused on selling hardware, it seems unlikely that Microsoft would beat them in that game. They're not even playing that game.  

Yeah, I can't find stock for an Xbox or a Playstation. But what do I have? A PC.

So I have been playing Halo Infinite and other MS games without an Xbox. At this point I don't really need one.