Xbox is Microsoft's only consumer division that has substantial revenue. Even consumer office brings in half of what Xbox does.
Microsoft is making the right moves here slowly shifting away from hardware (no profit) into software in the gaming space, but it's going to take some more time to do so.
Potentially it makes more sense to drop xcloud (huge black hole for the next ~10 years), to adhere to CMA's claims of them dominating the cloud gaming space, so they can continue with Game Pass (the part that actually matters for Xbox).
Microsoft is making the right moves here slowly shifting away from hardware (no profit) into software in the gaming space, but it's going to take some more time to do so.
Potentially it makes more sense to drop xcloud (huge black hole for the next ~10 years), to adhere to CMA's claims of them dominating the cloud gaming space, so they can continue with Game Pass (the part that actually matters for Xbox).