The lack of Series X exclusives for the first year or so is certainly odd but it is not completely unprecedented. Nintendo released the Legend Of Zelda titles Twilight Princess and Breath Of The Wild on both new and old consoles. Despite owning a GameCube I bought a Wii on release day for Twilight Princess. I also bought Breath Of The Wild on Switch despite having a Wii U. (Although that was not at launch as I waited until Mario Odyssey was released.)
The console market is very cyclical, with platformer holders having to regrow their installed base every console generation. This leads to cyclical profits where a lot of money is invested in a new console and it takes a few years to get a return on investment and then a few years later the cycle restarts. The Xbox division is likely to be far more cyclic than other divisions within Microsoft and will not achieve the investors requirements of year-on-year growth because of these console cycles, whereas other Microsoft divisions will be able to provide continual grow.
I can easily see a structure where there are three Xbox consoles on the market at any one time and each has around a 10-year life. So every two to three years a new Xbox model is introduced and the bottom model stops being sold. This enables Microsoft to always have a premium $600+ machine (Series X) that is best in class but also a competitive mass market $400 model (Lockhart) and a budget $200 option (One X).
Combining Game Pass and xCloud would also ease the transition from owning local hardware to streaming. At the point a gamer's Xbox console no longer runs the latest games locally they may find that their Internet infrastructure has improved enough that playing the game via xCloud is good enough and they do not need to update their physical console.
With multiple Xbox models in one gen, and customer choices with game pass and xcloud, the author makes a good case imo. What do you think ERA?
Full article at GameCentral