Bad for gamers in general. Don't care about the MS/Bethesda sales equation part of this. Just more bad precedents, whether they get burnt in the PR space or otherwise is inconsequential. We have another case with Alan Wake 2. This is how they start when seeking to steer the industry...... it's called sending feelers....
Physical is good for the gamer/consumer and part of the ownership - control equation of consumers vis a vis the suppliers who would rather have total control via digital. Systemshock, as many PCMR loonies on the MS/Valve tit could give two fucks so that's natural. It's also no surprise and not by coincidence that Windows Gaming (MS) aka PC Gaming is a space where physical already died out. The consumers of that platform already lost their "fight" ages ago - the alternative and escape route being piracy, which has been significantly addressed by the market through online-only games. Some can't see beyond their nose when they're being had.... the control and conditioning is so great that they themselves belief their position on the matter was of their own choosing, and rationalized beneficial for them (and not market actors steering it for them). The human brain is a crazy construct...“Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.” - AB.
The more consoles become like PC, the less consoles are like consoles. Strategic long-term win for MS. It's a simple equation. Success is not measured solely by how much MS can sell Xbox (it's one of many variables). Success is also measured by how much they're able to change/steer the industry (by having a presence) to shape the consoles industry in their desired direction - a direction in which Windows PC gaming is relevant and not losing ground to consoles, and above all Microsoft as a whole is relevant. Once you understand this well, everything else falls into place, like.... under performance, continuous money pit loses, "incompetence", "bad policies", "shooting themselves in the foot by going against tradition", refusal to kill Xbox, hiding Xbox in financials, trying to change the game forcefully by different means and methods etc....... etc. MS does not need consoles, but it does need Nintendo/Sony out and it needs and craves those 250 million gamers in their ecosystem. It's a longgggg fight...
If tomorrow MS decides to kill Xbox, PC gaming today is better off than during the PS1/PS2 era and the general trend of that era when consoles were dominant and PC gaming was a fart in the wind. The tide was stopped and reversed in many ways. That's a measure of success - which came at a cost for MS but that is the price to pay to protect the golden, monopoly status goose. Some just can't see it nor think "big". Mind you, your regular gamer Joe is not supposed to think of these things deep, nor have the critical thinking skills required, nor the accumulated knowledge to put 2 and to 2 together, connect the dots, and reach the correct conclusion - cause you can have all those things too and reach the wrong conclusion. Ohh well... life goes on I guess.