(Business Perspective) Does MS really need Xbox Hardware?

[DonFerrari]

PixelPirate said:

To me, it doesn't make sense for Microsoft to abandon console hardware. It is an integral part of their gaming ecosystem and is instrumental in driving sales for Game Pass. Xbox consoles have become synonymous with Game Pass, so it would be unwise to discontinue them. Additionally, the console should remain the best-optimized platform for playing first-party games, and it's unlikely that xCloud or any other alternative could match its performance.

If Microsoft were to abandon hardware, it's unlikely that Game Pass would be made available on competing platforms like PlayStation or Nintendo. This could result in millions of subscribers being lost, making it a risky move from a business standpoint. Therefore, it's crucial that Microsoft continues to sell hardware to sustain its position in the market and retain its loyal customer base.

And I do think that Sony and Nintendo would accept a GP light on their platform that only have Xbox exclusives for a cut even if MS doesn't make those games directly available on their stores, but a full GP they won't allow even if MS doesn't have a console anymore because of the loss of royalties 3rd party games would present on their platform.