I expect a significant portion of the Xbox experience will be part of or involve Facebook by 2025 or so.
Microsoft Teams probably made more money in 2 months than Xbox did its entire lifetime.
Nothing about the Xbox business seems to be a good return of investment ever.
It's just a matter of time before they drop it but unlike selling wholesale to Amazon like Mattrick wanted, it'll be a slow burn transition towards Facebook.
All this because MS wanted to get rid of Mixer and the only company that even makes any sense for them is Facebook?
(the other big players are owned by their massive competitors in the cloud space)
Microsoft is transitioning away from a focus of selling boxes towards xCloud and focusing more on Xbox GamePass and content.
Facebook has the social media networks locked down with Instagram and Facebook and Xbox Avatars and such are child's play compared to those massive eco systems.
Oculus is growing in the mainstream VR space and will likely introduce AR as well.
Outside of LinkedIn and Mixer Microsoft doesn't have a social media network or streaming service.
They have a bunch of video game IP's they 'bought' like Minecraft and Gears of War but that's all.
The only thing they've built up over the past 2 decades with multiple bumps along the road are HALO, Xbox Live and a viable marketplace for third party publishers.
Whatever they're building now with all those newly acquired studios is not aimed at being a third place hardware vendor again and outgunning PS5 with 2TF or Forza looking a tiny bit better than GT7 is not going to make a dent.