Ugh, it is complicated, Microsoft isn't interested in competition with consoles, so they see bigger profits as highest priority. Sony is home console and Nintendo is portable console, so they got a lot of gamers own both consoles.
Microsoft's withdraw from console business is very unlikely and they are no Sega, so it is for gamers who love Microsoft and want to have Xbox console.
and yeah, price for hardware and software are going to up, so it is apparently that companies spread the tariff to make a less impact for American customers, so it do frown a lot of gamers living outside of the US. Also, IT hardware seems getting more expensive, so it could affect the price and other reason is increased profit. The full picture of tariff on game consoles are unclear and they go up and down.
If game console sales get very slow, so they will resort to price cut, so it looks like Microsoft, Sony and Nintendo are testing the customers until customers call for quit spending and sales go down, so 3 big companies are just like... let cut the price to boost the sale.