I think tech is far along now that there’s a space for something that is “best of both worlds”. Something that Valve has been trying for a while yet was only successful with the Steam Deck because tech just wasn’t there yet.

Think about it like this: instead of making a whole Xbox based build, devs simply make the PC version of their game and within that PC version they make a series of graphical presets that are the Xbox version, and another one that is the handheld version. This would lower costs for them while Microsoft focuses on building a windows OS that is gaming focused and suspends all the crap that hogs performance.

Microsoft’s track record is not great at this type of “fork” but I think for them as a company this path makes more sense than chasing hardware which has never been a strong suit of them and loses money anyways even for their competitor.