Microsoft is already responding to the potential shift. The upcoming ROG Xbox Ally X handheld from Microsoft and ASUS will reportedly ship with a gaming-optimized version of Windows 11 with a dedicated Xbox UI and interface that aims to streamline the experience while boosting in-game performance and overall handheld efficiency.
Given how much Microsoft wants to shove AI tools every where in Windows, I don't think this optimisation will make much of a difference.