There will always be a market for pre-built HTPC's running their own proprietary "entertainment" schemes.
Right now the market's oversaturated, there's isnt really room for 3 console manufacturers and they're all bleeding money (except Ninty, I guess because all they do is consoles.)
Xbox is just a convoluted scheme to charge PC gamers for online gaming.
360 -> Windows 8 -> Make Xbox games available on Windows Live for $60/year -> Windows Live becomes the next Steam -> Windows/Live continues to print money for Microsoft for the next 10 years.
The console market is much too small for a company like Microsoft.
It's just a stepping stone. Their agenda isn't simply to sell Xboxes, it's to expand Windows.
LazySloth718
The pushing windows agenda is a really good point. ( Kinda scary) But I disagree with the console market being too small for Microsoft. To quote Wikipedia:
"video game consoles represent 25% of the world's general-purpose computational power. "
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