Yeah, but why not? You're clearly not doing anything with the property. Might as well let someone get good use out of it.
Microsoft seems intent on destroying every one of their valuable properties with enshitification, trying to pull the last dollar out of existing products instead of innovating or providing anything for their customers.
As for Xbox being a loss leader... what are they smoking? The boxes themselves have been for a long time, that's just game industry economics. They've already divested from that, pushing the hardware cost onto manufacturers, which is sure to make the platform price go up. But the software side of that business? It's always been incredibly lucrative.
What have MS done, lately? The only things that come to mind are increased "vertical integration", pushing their customers to the cloud while at the same time increasing the licensing costs and decreasing the quality and usability of all of their self-hosted products. Managing Windows has become increasingly difficult, and once useful tools don't even work. The tools that do work, Powershell, usually don't even work, with constant drift across products as to what works and what doesn't.
There are further cultural observations to make specifically related to Xbox, but I'm sure that would get some people in a tizzy.