Give me a chance to seriously reply to Klobrille's concerns in good faith. Because, you see, the fact is he's only speaking up now that MS are looking to bring more of their non-GaaS/non-COD/non-Minecraft games to other consoles. So yes, in a big way, for him it's about what plastic box these games are coming to now.
However, I don't remember seeing him, or people like him, miffed when Microsoft began their Day 1 PC initiative, or bringing their 1P games to Steam, both of which have
already contributed to the confused identity problem the Xbox console brand faces today. The only reason that PC initiative has made sense for Microsoft, is because they have deeply vested interests in the PC industry, from Windows to DirectX to OEM contracts to various middleware to Visual Basic, so on and so forth. Even as Windows Store has failed in terms of a big gaming push, Steam is still heavily reliant on Windows, so in effect it's still reliant on Microsoft (though slowly, Valve are trying to get more PC gamers away from Windows with Steam OS & devices like the Steam Deck).
Microsoft took a calculated gamble and figured retaining some presence in PC gaming was worth potentially sacrificing a lot on the Xbox console front...it's just now taken a few years after the fact to see the results of that gamble. And the reason Microsoft took such a gamble in the first place, is because they were likely already considering changing the business model around Xbox since the middle of last decade. That said, they still spread their bets, hence why they gave the traditional console take another push with Series S & X, and it looked like it was going pretty well at launch, through 2021 and early 2022...then the lockdowns ended. The pandemic ended. The subscription bubble ended. PS5 supply started getting better. And suddenly a lot of the outside factors that gave Xbox a boost just...went away.
If anything, the somewhat lukewarm market reception towards games like Halo Infinite, RedFall, and Starfield have probably convinced Microsoft internally to finally just shift away from the traditional console model altogether. And when I say "lukewarm market reception", I don't just mean in terms of somewhat (or heavily, in the case of RedFall) soggy scores or B2P sales. I mainly mean in terms of driving Xbox console sales and Game Pass subscription growth. Somehow, 2023 saw
worst sales for Xbox consoles than 2022 despite having a more robust 1P lineup. As for Game Pass...it's been two years since we got an official subscriber count update; that should tell you everything you need to know.
It's because of those last two things, more than anything, why Microsoft are probably more fully committing to a 3P publisher approach now, although it'll be gradual. People like Klobrille don't seem to get that this isn't about "Xbox" anymore; this is Microsoft Gaming's operation and has been for a while. Xbox as a console is just a smaller part of that, especially these days given the decline of the brand. There is no "Xbox leadership"; there is Microsoft Gaming leadership. And Microsoft Gaming want to bring as many of their games to all platforms as possible, it would seem. Hence, these rumors.
That doesn't mean Xbox hardware is going away (at least, I think). It may be taking a different direction going forward, but I think it'll still be around. So if you still want an Xbox gaming device and want to call it a console, well I'm sure you'll probably still be able to do that and at least on the outside they'll likely still have something that very much looks like a console and has those conveniences. But the
other stuff you normally associate with consoles, like exclusive games and directly competing against other consoles...you're probably better off leaving that behind when it comes to Xbox. On the flipside you'll probably get more usability out of it like a PC, and last I checked PC still has a lot of exclusives like League of Legends and Half-Life: Alyx. So if you still want to play that game with Xbox, you can do it via that way.
Klobrille...Microsoft knows
exactly what they want to be in gaming. You're just too stuck in 2007 to see it yet.