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Phil Spencer has reportedly reassured employees Microsoft ‘won’t stop making Xbox consoles’
(www.videogameschronicle.com)
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If Xbox disappears and leaves only PlayStation at that tier, I think it's more likely we're looking at the end of consoles altogether in as little as 15 years.
As consoles moved to be closer and closer to custom PCs, I think it was only a matter of time. But, wasn't that the point?
I think the reason for consoles was, you pay X dollars (normally the same price as a decent video card), and you are guaranteed that any games that come out with it works. All you have to do is plug it up to a TV with HDMI and boom, working video game box with smart capabilities. It is/was a good idea, but I'm guessing MS is looking back at their Xbox One always online days and say you can hook up this $100 cloud base console and stream your games (that you pay a subscription for) with little to no degradation. Honestly they could go so far as offering it alongside select or premium TV brands, they are already doing that with LGs. The next battle will be game ownership, Ubisoft has already started that battle. Looking bleak, may be pulling out the old pirate hat
I could see Xbox becoming just a Windows PC preconfigured to launch essentially a Big Picture mode version of the Xbox app or something. And then maybe Sony goes ahead and makes their own store/launcher to sell a PS6 or PS7 that’s just a PC as well. But if you have your own PC, that’s fine too.
With them releasing more of their library to PC, this wouldn’t surprise me.
Sony will hold on to that kicking and screaming, because once they're just selling a PC, they lose money for each third party game sold, and they lose PS+ revenue.