You're gonna ignore the 6+ million Forza Horizon 5 sold on Steam? Or the majority of SOT's 15 million (up to the PS5 port anyway) were done on Windows Store and (especially) Steam?
And I've mentioned them previously. Game Pass being a big one. Bad traditional marketing, lack of consistent big mainstream AAA exclusives being two others. You can throw confusing messaging into the mix (Series S & X likely sounding too close to Xbox One S & X for a casual).
My issue is, you and a few others are pretending that Day 1 PC for all Xbox games, has had zero impact on Xbox console sales. That's just fundamentally a false assertion. Keep in mind, that MS didn't actually go fully Day 1 for all games until just before the Series X & S launched; they started the initiative in 2016 but it was gradual, and they originally only focused on the Windows Store/Microsoft Store.
It was in 2020 when they started bringing games to Steam and doing so Day 1 for all offerings. Coincidentally, the sales collapse we've seen with Xbox starting late 2022 , would have very likely started even earlier if it weren't for the combination of COVID lockdowns and incredibly scarce PS5 supply during the lockdown period. Those two things gave an artificial boost to both Xbox (specifically Series S) and Game Pass, and at this point I think MS either know this or have no choice but to accept it.
Not Day 1 on PC in any general term; you know I mean Day 1 on Steam, which is the case for Microsoft's games, and has been for the full slate the past four years.
PC Game Pass, Windows Store...these are things that Microsoft still have control & ownership over. If their games were simply limited to those offerings, considering how little market share Windows Store in particular has for PC gaming, then Xbox console sales would both be better.
Even if they
weren't better, Microsoft would still ultimately win out in that scenario. Because, again, they own PC Game Pass and Windows Store, just like how they own Windows. They are all vested interests for Microsoft in the PC space.
I'm not the one trying to spin narratives here implying Day 1 on PC (Steam) had zero impact on Xbox console sales