If we're entertaining the hypothetical that XBOX effectively becomes a third-party publisher, the implications are far more severe than some people seem willing to acknowledge.
There is no version of that outcome where XBOX users come out on top. And if Microsoft actually abandoned hardware, it wouldn't simply be the end of a console. It would represent the abandonment of a platform and a profound betrayal of millions of people who bought into it on the expectation that Microsoft intended to compete in it for the long term.
The damage wouldn't stop with gamers either. A reversal of that magnitude would inevitably raise serious questions around Microsoft's commitments, contractual obligations, compliance, partner relationships and broader corporate credibility. I wouldn't pretend to know the precise legal consequences without knowing the specific arrangements involved, but the reputational consequences alone would be enormous.
Because once you've spent years telling consumers, developers, retailers and partners that you're building an ecosystem and investing for the long term, you don't get to casually dismantle the platform without repercussions.
This is why "just become a publisher" is such a shallow argument.