I'm not convinced Microsoft want to transition Xbox console gamers to PC gamers (yet*) but they certainly want to increase the appeal of their existing platforms while simultaneously making it easier for developers to release software on Xbox and Windows. Right now, if somebody decides to retire their Xbox and replace it with a Windows PC it is very likely they will install Steam and the existing retailer cut Microsoft receive from Xbox owners for buying through the Microsoft store and/or the licensing they get from third party developers when you buy their game on Xbox, they lose completely. Licensing fees don't exist on Windows and Steam will take the retailer cut.
Which is exactly why I believe that Xbox consoles will continue to exist. The PC is an open platform and because of this can never replace what Xbox brings to the table for them. And the PC market will not allow MS to turn the PC into a closed platform. I have never found a good reason to not run Windows on my PCs, but MS locking down content distribution would be an excellent one.