First and foremost, because MS doesn't get a percentage of any and all Windows software sold. Even going through the Windows store, the revenue split is much less than it is on Xbox. The hardware isn't what they (or any console platform holder) really make money on. Instead, they're making money selling related services - XBL, Games Pass, etc, and a healthy 30% cut on software. Things they wouldn't get if people just bought an Xbox as a cheap PC and proceeded to buy their games on Steam.RCBH928 wrote:I still don't know why Microsoft just doesn't put Windows in the Xbox, sounds logical and will give them major competitive advantage. All Steam and GOG games available on day 1. Modern consoles are just mini PCs after all.
Additionally, kind of as mentioned, there'd be a combination of accommodating more general Windows software compatibility needs, and general user experience. More work, to almost certainly not make money. To be fair, not everything MS has done really makes them a ton. The Adaptive Controller, while not super cheap, is likely a loss. Same for a lot of their backwards compatibility efforts - there's some great ability to sell older games that way, but there are also potentially millions of users out there that have a 360 disc or license already that won't have to give them a dime.
That said, it's not like the general concept has escaped them. MS does have the Universal Windows Platform that allows for writing apps that work on both Windows and Xbox. They also make a point to offer first-party games on Windows as well, and offer Games Pass on both, build streaming in, and have unified accounts. While not guaranteed, you can even have shared cloud saves between Xbox and PC (Play Anywhere). Their focus is multiplatform.
So it really kind of depends on why you'd want that sort of setup, as there are a number of potential reasons for it that MS does kinda do, just in a way that (understandably) focuses on you giving them money, not Valve or GoG or whoever.