Yes and no.
Yes, people have 'defaulted' to using the Xbox controller for PC gaming*. As a result of a steep decline in console sales, their controller has weirdly become the bright spot for their hardware business. It's the default controller for PC gaming, and through smart TV's having Game Pass/some gaming app, it's fast becoming the default for cloud gaming. I'm guessing this is part of the reason why they release seventy nine new controllers every two weeks.
The no part is, unless something changes, Microsoft are still committed to one more Xbox console generation. Even though it's clear that Xbox is transitioning into a platform and not a specific piece of hardware, there will still be (for now) one more fancy Xbox console. The fat lady is humming, but she hasn't sung yet.
*It's a massive missed opportunity for PlayStation. Billions of dollars (over time) just sitting on the table. It's part of the reason why their push into PC gaming is seen as a half-assed effort by PC gamers. If the DualSense -- the best controller ever made, by far -- can't 'DualSense' on PC without being plugged in or using some questionable third-party app, then it's just not going to gain traction on PC. I would genuinely love to know the thinking behind their lack of investment in this area.