I can see them moving completely to game pass and just dumping the hardware altogether. They’ll just stream whatever they sell on game pass to whatever hardware they can get streaming software on.
I'm not sure that's going to work for them? There are many reasons why games as a streaming service haven't taken off as well as MS obviously hoped. One significant one is the % of people with dodgy internet who would have an even more frustrating experience playing games than they currently do. It's the same issue as with "always on-line" requirements even for single player games, but on steroids. Local streaming, sure. Remote streaming? Not so much.
Same thing as affecting Valve's new hardware - all the chips are going into AI data centres. With demand out-stripping supply, prices are way up for all the manufacturers.