Their profit doesn't come from the one-time transaction of selling you a console (that is often sold at a loss, even); it comes from software sales. Why would they care whether or not you buy an Xbox One S or Scorpio when they can still sell you the software in the Windows Store on Windows 10, get you directly integrated into their ecosystem, control the prices themselves, and make even more of a profit on it because they don't have Valve or a retailer taking a cut off the top?
It's great for Microsoft and it's friendly for consumers; you'd have to be blind or ignorant not to see it. The only concern is whether or not they get their shit together regarding the PC ports.
Probably because they will still end up manufacturing those Xbox One S and Scorpio consoles hoping to sell them. It will still cost them to manufacture those consoles, and it's bad business for them to sit on shelves or in a warehouse. Selling them at a supposed loss is still better than eating a complete loss of sale. The third-party software they sell on the console comes with a licensing fee from publishers. Third-party developers will still sell their games on Steam, Origin, GOG, etc, on the PC. Microsoft doesn't have enough exclusives to sell on Windows to make up for any loss of sales of third-party games on the console if people choose the PC over an Xbox One.
That said, I still think there will be a demand for Xbox consoles. This move will eat some of those sales, but not enough to make a big dent. The official announcement of Scorpio is likely to hamper sales of Xbox One S consoles for those that have a PC or PS4 still looking to pick up an Xbox One, as they're better off waiting now.
It's definitely friendly for consumers, as they can wait and see how things play out. Great for Microsoft? We'll see.
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