> Xbox is the value proposition for people that want to play on Console + {PC/Handheld}

Okay. Then who is that? Most of the people who play games who I know are either A.) Console gamers who only use PCs for work, 2.) PC gamers who don't see the point in a console, or III.) The top 1% who just go where the games are and are willing to spend to get there, and that group isn't generally a fan of not actually owning their games, nor are they very price conscious (they don't like higher prices, but they'll drop 400 USD to buy a PS4 and Bloodborne, since that's the only way to play that game).

I'm yet to see someone using Game Pass on a handheld.

So if that's the intended market, no wonder it isn't doing too hot.