I think you guys are missing out on the bigger picture with Series S. Yes, it is selling very well and really helped out with the pandemic caused chipset shortage, but you have to remember that a pandemic of this magnitude is rare, chances are one won't be around to boost an entry level console next-gen. For all the positives associated with Series S this gen, there are also alot of negatives associated with Series S:

1. The more it sells, the more we move to an all-digital future. An all-digital future is something none of us should want. You never own digital games, so your access to them can be revoked at any point. You can't resell them used to get some quick cash that you need to buy another game you want. Digital game sales are significantly rarer than physical game sales (and this will never change, due to most physical game sales being initiated by retailers trying to clear up space on their shelves and in their backrooms/warehouses, not by the publishers themselves) and those rarer digital sales we do get often have smaller discounts than comparable physical sales. A dying physical market is costing retail jobs as well.
2. Physical retail presence in non-core Xbox markets is insanely important, but Xbox is never going to be able to attain that retail presence as long as an all-digital entry level console exists. Take Japan for instance, Xbox had great physical retail presence there with Xbox 360, most games got a physical release and Xbox had lots of shelf space in stores, and had shelf space even in smaller, more rural retail stores. All of that was lost during the Xbox One generation due to it's failure in Japan. Xbox has managed to rebuild some of that lost retail presence in Japan this gen, but it is almost exclusively in large retailers in urban areas, smaller retailers still aren't carrying Xbox Series like they did Xbox 360. Why? Well, because S is the model being pushed there primarily, publishers are refusing to release physical games for Xbox Series (it's my understanding that to date, Xbox Series has only received like 15 physical games in Japan in 2 years on the market). Because there are no physical games to stock on the shelves in Japan, the smaller retailers in smaller cities and more rural areas of Japan just don't stock Xbox Series at all, "why waste valuable shelf space on an Xbox section if all we will sell is consoles and a handful of digital code cards" they think. And we're looking at a similar situation in many other smaller markets, not just Japan. Playstation will continue to dominate Xbox in these markets unless something is done about these issues.
3. Xbox Series S will increasingly be seen as an anchor holding back development by devs over the course of this generation. While the stories about developers currently seeing it as an anchor are being overblown by the gaming media, we are still in the cross-gen period, we're seeing games that have to run on the much weaker Switch, PS4, and XB1 still, so of course Series S isn't seen as the anchor on development currently, by any except a handful of devs, primarily indies who just aren't good at the technical aspect of making games. However, all of this is going to change once last-gen support is dropped, when that happens either Series S or Switch 2 will be the weakest platform planned to be supported by developers depending on the game, and Series S will inevitably start to be seen as more and more of an anchor. Year by year over the course of what is shaping up to be a long, 8-9 year generation, Series S will be seen as starting to drag down development. This will especially be the case when/if the 3rd "Pro" console releases for Xbox, devs will then be expected to try and optimize games for 3 different Xbox platforms, ranging from 4 tflop and 10 GB of RAM at the low end on S, all the way up to probably 18 tflop and 24 GB of RAM on the high end "Pro" Xbox released in ~2025, and when that happens, many devs will be annoyed. 

Oh man, that woulda killed me lol

Questions for those who play Xbox IP on PC.

1. Do you play Xbox IP through Windows Store or Steam and if so, why?
2. How'd you rate Xbox's efforts on Xbox App/Windows Store specifically and how can they improve?
3. How do you think Xbox will improve from 7th or do you think it's futile and they need to get Game Pass on Steam?

One thing that Xbox has going their way is that the biggest genres on PC, in terms of popularity that get the most players, are FPS, RPG, Strategy, and Survival.

Xbox has ALL these bases covered. They have the IP, they just need to release the games. In a finished state that is lol. Halo Infinite lost like 75% of its Steam player base after the first couple months of release.

Thats for the MP though right?

I wonder what the overall sales of the SP is.

I plan to buy Infinite on Steam (and eventually on Xbox as well) - I just care more for SP Campaigns lol.

1. Over the past year, I'd give them an 8 out of 10. What holds them back is the store is still sluggish. Just goes to show how bad it was. They can improve by further optimizing the storefront and adding more features that would allow them to be more in competition with the likes of Steam. Such as forums and better mod support. Right now, the Xbox app is nothing more than a way to buy/play games and chat with friends. Which is great if you're on console, but on PC, Steam has spoiled us lol. Steam is an entire ecosystem and community that gives very little reason for you not to use it. Plus, it's been around for 18 years, so Xbox needs to be as close to on par with Steam in terms of features. Also, the PC versions of games on the Windows Store are just.....off. It's hard to explain, but the Steam versions of PC games just play better I'll also throw in having Play Anywhere integration added to Steam. 
   
   
2. It's not futile. Windows Store/Xbox app automatically comes with every copy of Windows. As great as it would be for PC Game Pass to be on Steam, it would probably hinder the storefronts ability to grow because Steam users would then have an even bigger reason to never leave Steam lol. If Xbox is able to focus on getting the Store up to par with Steam, at least in a meaningful way rather than a 1:1, it would see more growth. Plus, anything else that would allow it to standout from Steam. Idk what, but Xbox coming up with something to entice Steam users that only the Windows Store/Xbox app offers. Beyond Game Pass of course lol.

Unfortunately, Windows Store will never get higher than top 5 if they don't get the games added to the storefront. You'll have quite a few, but what about the Elden Ring, Monster Hunter, GTA, Apex Legends, Red Dead Redemption, Final Fantasy (lawlz) basically all the big games on the market that would be on Steam? That's also a huge factor. 

Also, releasing good, major AAA games wouldn’t hurt

One thing I would love is to see if they can give me a option to change the game list appearance, the current one is...a bit bloated for my taste, reminds me of EGS and EA Origin's interface which I really don't like either.... along with that there's multiple entries for games that should honestly be counted as 1 for the Xbox app unless there's a setting to fix that lol.

3. Whats happening on the 7th?

Bold - Yeah, it's like that on Xbox too, I don't like it either, it's ugly and wastes space.

Nothing is happening on the 7th, Lol. Microsoft said to the CMA that they're currently placed 7th on PC in terms of storefronts so their market share is tiny, they also seem to be implying that PC Game Pass is a tiny fraction too.

In regards to Bethesda PC gamers, like 95% of those wanting to mod their games are going to get them from Nexus Mods lol. Steam does have Workshop, but it’s not used anywhere near as much as Nexus Mods. So if the Xbox app is able to fully integrate mod support, that would do wonders. Right now, mod support is limited to certain titles even though you can now finally access installation files. 

Also, the Windows Store and the Xbox app, while integrated, are entirely separate apps. I never use the Windows Store, I only use the Xbox app. So as long as they’re focused on improving the Xbox app, the Windows Store can stay as is lol