I think Microsoft exiting cloud gaming is wishful thinking. I would frankly love it if they did that, but it is clearly a key strategic interest for the company and they even designed the console around accommodating the push for cloud, to the console’s own detriment (it costs a fortune to make because every series X chip is a server grade part)
10 years from now I think Xcloud will be remembered as another Microsoft boondoggle that cost them ABK and set them back in the console market. I don’t believe cloud gaming is a viable market