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LudicrousSpeed said:

Beyond traditional console hardware doesn’t mean replacing hardware, just means in addition to. They’ve also said there will always be hardware and streaming will be years away from being viable for the mainstream. This is generations away from being feasible to game on. Watching a movie or listening to music via streaming is not the same thing as gaming lol.

Same was said about streaming TV/movies in the early 2000's... vs Music streaming.

MS doesn't think it's years away, nor do 5G providers
https://www.tomsguide.com/features/5g-smartphone-gaming

Steamdeck proves people are ready to play their favorite games on smaller screens on the go. Sacrificing quality for convenience.

It is viable now for casual gaming. It is ready for the mainstream. It's not ready for the 'hardcore' gamers, but those are in the minority and basically got used to get gamepass going. Let your most dedicated fans promote gamepass far and wide + make it available everywhere through streaming -> tap into the blue ocean of the other 2.2 Billion gamers out there. (The number of active mobile gamers worldwide is over 2.2 billion. Apr 9, 2023)

What incentive will MS have to still release more plastic boxes when gamepass + xCloud makes them magnitudes more income?
What incentive do people have to buy a blu-ray/dvd player when your tv menu offers a faster more convenient way to watch movies?
What incentive will people have to buy a console when your tv menu offers a faster more convenient way to play games?

Netflix taking off depended on getting rid of the middle man, the console or PC as streaming device. Gamepass/xCloud is in that stage of still being dependent on extra consumer hardware. That's what MS is working on, to get rid of the box in the middle and stream directly to your tv or phone. Project Keystone is the Roku stick. But MS is already negotiating with TV manufacturers to get xCloud on your TV, and is looking at getting it onto your mobile phone as well.

Sure, it means in addition to now. In 10 years the hardware (if still available) will be in addition to streaming. Maybe it will take a bit longer without the ActiBlizz deal going through, but it's coming.