That makes sense. Microsoft didn’t enter the console market for gamers or gaming- they entered it to beat sony. The PS2 had a linux distro you could load on it to try to sell it as a computer to circumvent luxury import taxes. If it WAS a computer, it would compete with Microsoft Windows. They were worried that a console could just sell software instead of games and be a competitor, so they threw a ton of money trying to run Sony out of business.

Microsoft never really wanted to win gaming. The war was against an enemy that wasn’t really a threat. So not killing off a console wasn’t really a “loss”.