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I don't know if I commented in this thread, so these are updated thoughts potentially:

I don't think it's great that MS essentially moves away from hardware, but it does make console buying a lot easier for everyone: just get a PS and a Nintendo device and you're covered. PC if you're into that.

My concern is really how do they sell GamePass if they exit hardware? Their hardware is clearly the easiest gateway into that GP subscription. Would Sony/ Nintendo allow it (like how they do EA Ubisoft)? Honestly, I feel like if they don't then this gonna work out for MS.

That said, it's clear that going multiplatform with their games is all about revenue. They aren't getting it from physical on their own hardware, and I imagine that GP isn't really as profitable as it needs to be to get it from there. 

Asd for moving away from physical media... not great for ppl who want it, but it doesn't matter to me since I've basically moved digital for the most part.