Games

True, but I'm not sure how closely Xbox works with the rest of Microsoft. As far as I know you have never been able to put Windows on an Xbox or Xbox System Software on a PC officially. In contrast, the PS2 and PS3 had official Linux support (which Sony tried to remove from. The PS3 for security concerns and got sued for).

Microsoft has a hardware division yes, but barely. It's basically just Xbox, which is failing, and the Surface, which is also failing. They already lost the Mobile market. They seem content to have their laptop and desktop focus just be getting Microsoft software on other hardware.

I kind of get the impression that's the direction they are moving. They simply haven't done well in hardware, and their more successful business areas are the ones that are putting Microsoft software onto 3rd party hardware.

I'm still not convinced GamePass is really going to work, but Xbox and Microsoft seem to be. And while I don't like subscriptions in general, GamePass definitely surpasses any competitor. So rather than roll out new hardware, I think they are moving towards putting GamePass on the Switch 2 and PS5 or PS6. Microsoft has instructions published for getting Xbox Cloud Gaming working on the Deck. I think they want that on the handhelds from AYA, AYN, Asus, Logitech, GPD, and everything else.

They might want to make Windows a viable option for those handhelds, but... They also might not. That would be a huge amount of work for them to compete with Steam. And we've seen how unpopular Windows 11 has been. They've been downsizing the teams working on Windows for years and focusing more on Edge and AI. I get the impression they just want the Xbox division to lower costs and become profitable at this point.