This is a pretty crazy quote from MS because it basically is flat out saying the Xbox itself isnt the key to their long term gaming strategy
They key there is "aligned to our long term opportunity."
Well, Ms is often practically flat out saying that they want xbox as a game platform on all windows devices, and the goal is to have xbox as a console that runs windows 10.
They said that they want to have your games available on any device you own (which is also their strategy behind apps), they even said that in that extent that they want to bring the 360 emulator to Pc.
It's more and more looking like that the next xbox is going either to be a reference design with other consoles from OEMs, or that they will have a Windows 10 Console Edition (like they have one now for IoT), where you can install in any pc.
People wont pay for live on PC as long as Steam is free..doubt it.
For multiplayer they probably won't. But what if Ms starts throwing some free apps and games from the store each month from the sub? Or some other incentives. Windows user base is huge, they don't even have to get a high attach rate to make tons of money.
They already have a work and play bundle, that gets you xbox live, office 365, and xbox music. I can see other bundles like this being pushed more as well.
And no to mention, in Ms current market share even if they don't directly spent on xbox live, I think that would be happy if a large number of users started using xbox as a gaming community, even if it's to play steam games. Kinda like how they are increasing bing market share by having Cortana and other bing powered services on windows 10. That way they gain mind share, and usage. The best thing they can go for now is to make people associating xbox with their games, and choosing xbox for their gaming social interactions.