[jsmith12673]

It's possible that Xbox serves as a loss-leader for introducing/keeping people in the brand.

For kids who may only have chromebooks at school, and macs at home, an Xbox may be the first time they make a Microsoft account. That account then goes on to accumulate digital assets and stays with them until much later when they're ready to make bigger financial commitments.

Anecdotally, for the past few years, gaming has been the only reason for me keep a Windows device around at all.