I have often said that I suspect that Microsoft will get out of the console market after this generation.
Microsoft created the original Xbox because consoles were cannibalizing PC game sales. Over the last three generations, the Xbox, Xbox 360, and a lesser extent Xbox One, largely resolved those issues. For that reason alone, I believe the Xbox brand will become a service over the next generation.
Xbox Game Pass is rather expensive, but if you can get a 3-month coupon, the deal is often quite good. When a game is on Game Pass, I do not buy the game until it is off the service.
According to GameSpot:
Dino Patti, the co-founder of Playdead and Jumpship, has revealed that Xbox Game Pass hurt the studio’s sales for Somerville.GameStop
I really do not think that Microsoft cares that sales are hurt by Game Pass. At this point, I really think they will stop producing consoles after the Xbox Series X|S. Microsoft no longer needs to offer a console. They have their own eShop as well as their games embedded in the others, like Steam.
Why go to the expense of producing new hardware, if the games can be released on Game Pass and the PC?