Consoles will always be around but they aren't the be all end all anymore. Next gen, even less so. You guys are so hung up on console sells. That time is over.
You only make money once with a console. You make residual revenue with software and services. Not saying consoles aren't important, they are. Just not AS important to gauge success these days.
People use all types of devices to play games, so when you say stuff like, "you guys are hung up...." , lots of people play on PC with Steam or other providers. 100s of millions if not billions play on all types of devices (consoles, phones, PCs, tablets, raspberry pis, etc.) -
what is changing there? Nothing. It may or may not be a smart move for Microsoft to get out of this market section, I don't know. I mean I can understand, I'm not only not surprised by it - I've been telling friends and family this for years about the Microsoft consumer product. (Which I was and still am a user of)
Everyone knows they want services and people to pay for services, I just don't think there are any services people are interested in, I just think of them as I do with the rest of the providers. IMO, Once you (Microsoft) get away from the restricted hardware, than all you are is an optional service provider which can be locked out of a segment, see Valve with iOS. Companies use Microsoft services on the business/enterprise side, as there is a need and there is legacy to protect/use, now maybe Microsoft will be successful, I'm just not sure I see them really doing well in the consumer side, but that really isn't the point of my discussion.
You might be right, maybe they are making the right decisions - to me this is actually what they have been doing on the business side for 5-7 years, I'm just not sure there is really a need for their "service" and they are way late to the market, but maybe that is another discussion. I actually don't necessarily disagree with you but Microsoft could have been competing for years on this front, yet, they either don't compete or fold like a stack of cards, generally. I just look at Microsoft at this stage as just another provider (services) and generally I would say a bad record outside of Xbox (and even bad within Xbox at times) on the consumer side. They're really not doing anything others haven't been doing for sometime which is what is confusing to me - lots of excitement but I have no idea why.
At this point, they are just another publisher/developer like EA, Activision, Ubisoft, etc. and there isn't anything wrong with that, cool, if they can make a game we like, cool!!! However, I just don't see the need for them as a service provider in a broader sense and I have serious doubts this will work out for them, but I don't know that as a fact. I say good, go compete, generally they haven't been willing to do that in the consumer market other than the early days of Xbox, imo. They could have been competing in Phones, or watch tech or software distribution (Games for Windows Live/MS Store)... the question is... why haven't they been? What's different now? How do you compete when you are so far behind the competition? I don't necessarily disagree with you that there can be opportunity for companies to provide "services", but lets be honest, their generally trying to create a solution looking for a problem.
There is only so many subscription a person is going to pay.