Xbox was launched in an era when there was real fear that Sony's then upcoming PlayStation would "win the living room" and home purchases of Windows PC's would

Xbox was launched in an era when there was real fear that Sony's then upcoming PlayStation would "win the living room" and home purchases of Windows PC's would cease. No one thinks of the PlayStation as a general purpose conpetitor to the PC in the home today, so now the Xbox is just an incredibly low margins product (for Microsoft). Microsoft would much rather sell you a much more profitable PC as your VR hub/Alexa competitor.