MS needs the hardware until they have xCloud going on TV and Mobile, and it works good enough. So at least another decade I would think. Basically until xCloud becomes big. No clue if the next Series console will still go for power or go for a cheaper streaming solution with full BC. It seems sales are split half half already?
Eventually Sony might ditch hardware as well, however PS is popular all over the world. XBox mostly US and UK so much easier to switch to cloud gaming. They'll lose some customers (while gaining many more) but not as many as Sony stands to lose. Much easier to get good cloud service to Western countries than all over the world.
Premium console hardware is no longer needed for MS. But they still need a box to get gamepass on. It might definitely be the last gen of having a disc drive in XBox consoles...
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