As long as you can also launch those storefronts through the launcher and so you can see your full library, install and buy games through them, then also set the default game launcher app in Windows, then this doesn't seem to be a problem.
They sell to a much larger market than they did in those days, not to mention they have more powerful tools to help developers, and Microsoft is not shy about their use of AI to help.
If you think of how expensive movies are to make and how cheap they are to see compared to video games, you can see why a lower price can still be realistic.
$80 games and raising the console price $100 will just price people out of it and they will go elsewhere or wait for sales or buy used and get it at a lower price anyway. And other games are still less expensive and will be more attractive when consumers weigh the decision of what game to buy.