Being realistic, it doesn't affect me a whole lot. If Microsoft's games end up just releasing on PC, PS5 and Switch 2, like any other third party company, then i'll still have access to whatever they put out. I'll always be hanging onto my Series X as a backwards compatible machine.
There is a great sadness in how the brand has been mishandled though. I've been with Xbox since the beginning, having fond memories of playing system link Halo matches at my after school club. Xbox 360 was an amazing console and seemingly did the impossible standing up against PS3.
Their big disaster was the Xbox One launch, which I think really lay the foundations for every problem they have today. I honestly think Phil had a clue for a good few years and helped somewhat right the ship with things like the One X, Game Pass and the backwards compatibility push. But it's become so obvious in the last couple of years that he and the rest of the Xbox management really have no idea what they are doing.
The most egregious sin is how they basically just gave up trying to organically improve the platform, buying up developer after developer and hoping the games problem would just fix itself. Aside from the Xbox One flop, purchasing Activision for $67 billion was maybe the single worst thing they did for the brand. I mean they weren't even going to put COD on Game Pass and the competition still gets the game? It will probably pay off in 10-15 years time, and I suppose that's a positive sign that MS will remain in gaming for the foreseeable - rising from the ashes as a mega publisher, like Sega on steroids. But just in terms of what it did for the Xbox brand, it was the most expensive wet fart in gaming history.
I presume the bean counters have assured MS it will all make financial sense eventually, but I still think of all of the studios and incredible games that could've been created with that money. To put in perspective, God of War Ragnarok and Horizon had a budget of $200 million each. As a gamer I almost would've preferred if they tried to go out in a blaze of glory with a phenomenal lineup next-gen, and then just exited the gaming business if it didn't pay off. The plan now seems to be them acting as a third party Activision stand-in...