Those were the best times and we didn't even know it 

PS5 console sales are more or less aligned with PS4, with cost being the biggest factor stopping it from doing better. PS5 gen is also very easily their most profitable. So if revenue is the end goal of the argument that moving games to PC backfired, then I believe you're categorically incorrect. 

As for XB, I'm pretty sure the decisions they made regarding gamepass and pc releases were done to help them with revenue, but whether that was the best long-term decision is questionable. Nonetheless, they're still doing PC releases for all their games so they haven't gone back on it.

That is also a very good reason why. 

IMO the best times for Xbox were 2001-2011. After 2011 the 360 exclusives really slowed down and then we had the disaster of the XBONE reveal. It's been a steady downhill after that. Phil Spencer became Microsoft Studios' General manager sometime around 2009. And the lack of good exclusives is IMO a serious factor in killing Xbox. 

But I do agree with you in a way. Spencer is like Bush Jr. This new CEO is like Trump. 

PS5 sales would have done even better if Sony had just stuck to keeping their games exclusive. IMO PS5 would be a little more ahead of PS4 aligned sales if they had never bothered with PC ports. 

A great way to tackle the problem of higher storage prices is to lower the memory size of games.

Xbox has proven that the classic console model of full exclusivity and based on selling first party software in big numbers is superior in generating profits compared to the Xbox model (Full first party multiplatform releases on consoles, PC and cloud and subscription revenue).

Imagine how much more profits Xbox would be generating today if franchises like Halo (That used to sell more than Zelda) also managed to sell 30M+ copies in the modern era like Zelda managed with BOTW. While IP from other companies increased their sales potential during the last 15 years, Xbox big IPs peaked in sales during the Xbox 360 era instead.

What use is a subscription model if they only manage to mostly retain previous subscribers? That means you are in a trap where you spend more and more cash on content every year to pretty much the same amount of paying subscribers. So the cash coming in remains the same, while the cash they spend increases, you can't square that circle in the long run.

Xbox and Microsoft have a plethora of issues, the worst of them are the complete lack of exclusivity and the declining quality of their original big IP's (Forza Horizon is the exception, hence the excellent sales). But X360's later years, Kinect fad, and the poor Xbox One launch also contributed to the brand's downfall. They messed up aganst Playstation and accelerated PC's growth, and now it's super difficult to bounce back. They also seem to have problems managing their studios and keeping budgets reasonable: layoffs, studio closures, cancelled projects left right and centre.

GamePass has actually been losing millions of subscribers. So it's getting worse than stagnation.