I think this is the angle Pachter talks about often on Pachter Factor: TVs will one day be powerful enough to do streaming video games, so all you would need is an Xbox controller (with a dongle for your TV, perhaps) and the Game Pass subscription and you are playing video games. For that large, untapped market that doesn't want to spend $200+ upfront to play video games, a $50 controller and subscription sounds just right. It won't be the best gaming experience (that would be why you get a console or streaming box), but it'll be good enough for people to buy in.
I doubt it's a "Xbox consoles for sales but get Game Pass on Playstation too" route. But hell, if there was ever a chance to play Xbox and Playstation games on one console, I'm down for that future. Especially if I can use the Xbox controller.