Honestly i don't see why they simply don't rebrand as XPC and create a small form factor PC running windows with an Xbox overlay that can connect to steam and gamepass and you'd absolutely kill it for those that want the benefits of a PC ecosystem coupled with an Xbox engineered TV box, hell I'd buy one ffs
There’s a lot to like about this idea if they could actually get an Xbox overlay to be as couch friendly as the Xbox dashboard is.
The hard part is integrating other pc game stores like Steam, Epic, EA, Blizzard, etc into it seamlessly. PC gaming is so fractured with all the different launchers.
Edit: they would also need to figure out how to make pc versions of games work seamlessly with a controller only, which may be the biggest hurdle of all as every game is unique