The problem is, we are thinking about this as if its a next console and console generation - its not.
This is basically a PC that uses the Windows Full Screen Experience (FSE) that we just saw in the Rog Ally X to emulate a console experience. The 'native' Xbox SKU, that had an updated build target that developers were building games for, thats going away, or rather - theres no Xbox Helix build target, its just a UWP build. You're just shipping a game for the Windows Store. You still have access to your Xbox library thanks to BC emulation, but as far as having a 'native' Xbox console SKU you built your game towards, thats done.
Its a set-top box version of the Rog Ally X, only its been engineered by MS, will be pretty expensive, and is being made for a very niche audience. Anyone thinking this is meant for a mass market target audience just has not been paying attention. And this has nothing to do with new leadership - she is literally walking into a direction that was set up for her long before she ever entered consideration. She's seeing it through because they've already committed funds to it.
They're just gonna use this thing not exploding in sales as the final nail in the coffin to roll up the HW portion of the business. They know what the forecast for it is, they are under no illusion that this is gonna be some Xbox 360 moment. That doesn't mean it can't be cool and satisfy their die-hards.
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