It is quite ironic that Microsoft is at best a court jester in the PC kingdom it built. If they had taken the initiative before Valve, they would be the ones dominating the PC digital market. Of course they tried, over a decade ago, but failed miserably because unlike the people at Valve who are passionate game developers/engineers/artists etc, Microsoft's top brass was and is still made up of soulless men in suits and ties who only speak the accounting language and nothing else.
So was Microsoft stupid for chasing the console market when the PC could have been the far more lucrative and easier option? These days they're getting trounced by Sony and to a lesser extent Nintendo in the console space and are firmly behind Valve/Ubisoft/EA/Blizzard in the PC space. They're basically stuck in no man's land and was it really worth it for one successful console that was by all accounts not very profitable?