In my opinion, the following option is:
1. SKU: Mobile Xbox with Intel nextgen APU with 16 GB DDR5 or 6. ~6TFlops with integrated NPU. Delivered with a dock into which the mobile Xbox can be connected to a TV. Docked 2x performance for higher resolution. The dock is equipped with an 800-watt power supply as standard.
All this at a price of $350.
2. SKU: The stuff above, and a relatively strong VGA 16 GB GDDR7 placed in the dock (can be Intel, AMD, Nvidia)
Pricing $650. (in this case, MS would provide the VGA for the machine at a modest price)
Customers can decide what they prefer, a pre-made version equipped with extra VGA, or a basic, cheap mobile version with a dock, for which they can freely choose any VGA they want.
And here comes The twist! The games are PC games, slightly optimized for the console APU, and can be launched from a fully consoled Xbox software interface. With this move, MS is independent from the GPU manufacturers and it is possible for customers to play in the quality they want, starting from the entry level, on mobile, or in the best quality.