Of course it is, this is the gen that killed Xbox hardware.
Xbox is in a tight spot. Gamepass kills sales revenue and they have to rely on platforms that generate healthy sales revenue to make gamepass sustainable, but that isn't enough. Game releases(on any platform) that aren't day and date have been dubbed "old" and thus will not sell nearly as well as they could have on competing platforms.
The biggest issues Xbox is facing is also an issue Sony is facing. PC is not the savior you want it to be.
MS wants to drop Xbox hardware but they can't. Gamepass is their bread and butter and gamepass cannot survive on PC alone. Unlike console gamers, PC gamepass players are very smart. They only buy when they are actively playing gamepass, cancel in between, stack years worth of cheap gamepass, and refuse to pay full console gamepass prices. They are fickle and lower in number. They do not care about Xbox. Gamepass on PC is a classic race to the bottom strategy. Not a good sign for a business folks.
So MS needs to keep Xbox around another gen so they can work on changing the landscape on PC to make it viable for gamepass.
Sony too is seeing that PC is not he savior MS bragged about it being in court. When Sony was going full GAAS I'm sure it seemed like all games going to PC were inevitable, but Sony's GAAS plan has been slapped down by gamers. Furthermore, Fairgame$ is still on the way, so the public beatdown of the gaas initiative is not over, but the initiative itself is. Sony's single player games on PC, meanwhile, have all flopped, hurt the reputation of Sony, and hurt the IP of every SP Sony game so far released on PC. PC gamers refuse to allow additional logins, launchers, higher prices, effective DRM, and most importantly they view any Sony game that previously released on PS5 as "old". PC gamers have made it very clear they will not pay full price for "old" single player games.
Because Sony can't go day and date on PC their SP games on PC will never see success and eventually they will revert them back to exclusives only playable on Sony's own console. MS is in no position and indeed has no need to do this since they are already day and date, their games aren't "old" to PC gamers and they have an advantage releasing SP games on PC. An advantage Sony can't afford. Even with this advantage, we have seen MS flounder on PC, putting into question if the platform itself is as valuable for AAA SP games as we once thought. It seems the PC crowd is less inclined to pay 70 dollars for a single player remake without online features than console gamers and that they tend to prefer older games, mmo, gaas vs the high production value cinematic sp experiences offered in modern AAA console gaming. They are VERY cognizant when a game has released on another platform first and will not value that game if the PC release is an afterthought. At least not unless your name is GTAVI.
Nintendo releasing on PC would be an even bigger disaster, opening them up to much more severe reputation damage from their actions controlling their walled garden, but also their tech level/game file size is so low and easy to emulate and their haters so plentiful, revenge/protest-emulation would open up a new generation to easy videogame piracy and the campaign to destroy Nintendo would grow exponentially and uncontrollably the day a current Nintendo AAA SP game released on PC. We would be lucky if they even developed games by the end of that fantasy. Nintendo would do well to stick to their own consoles and only their own consoles. Let Sony and Xbox be a lesson.