Actual story with Magnus is cost.
If Microsoft can't reliably be certain that they can earn a commission on games they won't be able to offer the console at cost.
Remember when I said in this environment with tariffs, PS6 is 899$?
Well XSX2 is probably at least 1,799$ if Microsoft can't earn after sales.
The cost spirals out of control completely. And suddenly it's just a high end AMD PC.
The market for an AMD high end PC that's sold at a profit doesn't exist. So they have to find a Way to launch at cost.
If Microsoft wants to launch at cost (~1200$ currently) like PS6, they need to be able to:
1. Prevent piracy
2. Take a 30% commission out of a significant % of purchases.
3. Take a 10-15% commission out of approved stores.
4. Lock certain system functionality behind Game pass. the conversion rate has to be high. as high as sony forcing PS5/6 gamers to cough up 80 (soon to be 100-120$) for online.
They can't do it. So the case has to be how Magnus can he a vehicle for Microsoft to justify increasingly locking down the entire PC platform.
An analysis that compares PS6 with XSX2 misses the point completely. It's not PS6 vs XSX2, it's Steam Machine/Deck 2 vs XSX2 and Windows vs Linux.
TLDR: MSFT is not in the business of selling billions of 0% margin boxes unless they have a concrete case for how they can earn significant recurring revenue through it.