I am with Jumpinbeans, sure Phil is not saying Xbox as a console is unimportant, but you can see the platform MS cares about is shifting to Live/Gamepass. Gamepass is the play to create a Netflix of gaming, and if successful, the exclusives will shift from hardware to online services. You will need the Apple service, the MS service, the EA service, the Sony service, etc to get at each company’s exclusive content.

So Xbox is basically gonna be Gamepass+Xcloud. I don't think any other company can do that and succeed except Xbox for now so PlayStation still has a good 2 generations left for it. Nintendo will depend way more on its hardware so it has at least 3 more generations left. One thing I do like about Luna is the channels concept so you don't need to get the unnecessary bits like with stadia and Gamepass but only devs you like but that also depends on how much each channel costs

I ask the question, what moves gamers, is it the hardware or the games.  The hardware is the vehicle to the games but MS isn't putting all their ducks into that one vehicle.  They have at least 3 platforms that they are trying to take advantage of and the thing that binds them all together is gamepass.  So you have PC, Xbox, Android and soon to be IOS.  MS bought studios not to just limit their ecosystem to just one hardware platform but to utilize them all.  Yes, MS would love for you to purchase their hardware just like they would love for people to purchase their surface devices because they spent money making them but the real prize is getting you within their ecosystem where you use all or some of their services.  

You are correct that the nature of the business is changing and the big players are coming whether you like it or not.  You either adapt or fall behind but what you do not do is let your competition get a leg up on you and it takes you years to claw back if ever.  Sub services are coming to games, this much we know because MS and Sony has them and you can believe at some point so will Nintendo.  Now you have the other guys coming, Apple, Amazon, Google, Netflix and who knows who else.  You already have these services on the PC with EA, Uplay, Humble Choice.  The thing is the market is already headed this way with subscription services.  The thing is who will come out on top.  Amazon present a good case as they are willing to bolt on other subs to their main service.  MS marriage with EA Access says they probably willing to do the same.  I can see MS doing a different tier where they add UPlay and other services onto Gamepass to rule them all like cable TV.  Its definitely looks like that is what Amazon is trying to do with their Uplay sub add on.

Phil has repeatedly said streaming will always be inferior to local hardware and that it will always be a convenience option, not the main focus of their platform.

They want people playing Xbox, they don’t care whether it is Xbox hardware, PC, Switch, or mobile. However, that doesn’t mean they don’t care or emphasize hardware. They are about to release the most powerful console ever. 

That fear mongering about services has been around for this entire gen. It was already supposed to have happened. Thanks to EA Access, we are already supposed to be paying for Activision Premium, Ubisoft Plus, 2k Games Platinum, Sony+, Xbox GamePass, etc etc just time have access to exclusive games. Yet literally none of it happened.