Does the Series X look like a "Darth Vadar" Star Wars mini-fridge from Skymall cicra 1997? Does the Series S look like a mono speaker from the same Skymall catalog? Does the PS5 look like a "cheap" router you'd rent from your local cable company for broadband?
Yes, to all three. But I digress.
Microsoft does not care about identity, nor about consoles, and if they could, they'd stop making them all together.
Microsoft wants ubiquity.
Straight up, Microsoft wants Xbox to become a services company / THE services company in gaming--like iTunes, Netflix, or Spotify--that's available everywhere and on everything. But to make that happen they need a constant stream of content, which is where acquisitions and market consolidation come in, as it's cheaper / easier to acquire the means of production (in the long term).
Microsoft is finally able to leverage its two greatest advantages--near infinite financial backing and Azure--because they simply can't compete with Nintendo or Sony in the tradition console or handheld market.
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