Think MS need one final reset with the new Xbox or just give up completely, the Series S killed any momentum the X had with multiple devs coming out and speaking against it (being honest the machine to me was great when I had to work away for 3 months and I could play latest releases on a portable box for that time so I got what MS was TRYING to do) but like most, everyone has just moved to Playstation.
If they have now seen they need to give the console space one more try, A powerful console (which we know they can do, the X is a great machine and console but not much to really pull you to play on it), and possibly the rumoured portable like Steam Deck device would give it a good start of pulling people into the Xbox eco system.
Think I've seen most people say if MS did a dedicated handheld, they would be more interested in the Xbox ecosystem, just feel MS don't listen to their consumers atall.
We know they are making a new Gears, Halo etc potentially prepping it for this new Xbox console.