You're oversimplifying it. If it is just about opening multiple sources of revenue, why not put all their games on PlayStation? Xbox will still get Xbox customers as well as Gamepass subscribers, but Xbox will also sell more software via a new revenue source.
But they don't do it (rightfully so) because every decision -- chasing every revenue source -- has a cost attached to it. It's the same with retail sales and GP.
As the old saying goes, "If everything is special, then nothing is special." I feel Xbox will eventually have to pick a lane. They can't grow if they keep trying to sail in multiple boats. None of the successful companies (Xbox's direct and indirect competitors) is doing what Xbox is doing, and they all are more successful than Xbox, despite not having MS at their back to support them. Perhaps there is some validity in thinking that Xbox's strategy isn't right. Otherwise, they would be at #1, instead of companies that are 10x smaller than MS.
I was talking about Xbox's first-party software. That's why I kept using the Netflix Originals example.