Sure, it would be a mess and people would be mad, but they are mad about anything for about 2 weeks then they move on to be mad about something else.

Console sales are only a indicator of the demand. Should the Xbox brand suddenly disappear, that doesn't mean the sold consoles would be gone, they just would not make new ones and no more first party development.  Sure It would fade out of the market but developers could still release games on the platform. In the following generation there would be one less platform to choose from and the damand would shift to those. People wouldn't just stop gaming all of a sudden, they will buy what's available on the market.

Really, as far as HW goes, they both need to worry. Nintendo is basically doing a last ditch effort and combining their home and handheld console biz. If that fails to succeed, what are they going to do? Attempt another variation of the Wii strategy, yet again?

As for MS, the Scorpio feels like the same thing. A last ditch effort to impress the bosses that Xbox doesn't need to be spun off, sold, or just go 3rd party/PC. It's already obvious that MS is growing tired of spending money on Xbox with little impact this gen. Little to no 3rd party deals or advertising. Closing studios left and right, while also canceling 2nd party games. Moving all exclusives to help push Windows. And using E3 for the same. If the Scorpio falls flat, I expect them to really reconsider a XB2.

Of course, I don't expect either of them to disappear from gaming. Nintendo would either go 3rd party or mobile. And MS would most likely support the XBO til the end of the gen and then shift Xbox's focus over to Windows gaming. At that point, I wonder if they would keep the Xbox name or change it to Windows Game Studios, or something along those lines.

Na, they should be worrying about Sony closing their studios.

I worry about both. And sony too to be honest.

Nobody is doing so hot these days.

Sony is just the shadow of itself in Japan.

The Xbox One is in some kind of wait mode for the Scorpio, and the state of first party development is scary.

As for the Switch, well I'm not going back to that again. Had enough at the moment.

You do realize that everyone is a shadow of their former self in Japan? That's a Japan problem, not a Sony problem. Not even the Wii found much success there. Of course, other markets have grown to compensate for the shrinkage in Japan. There's also the fact that if things keep going as they are, the PS4 still has a good shot to outsell the PS3, possibly the Wii, there.

yes the japanese market is down, and so everybody is down there. But I don't need to say Nintendo is down there, Nintendo is down in every market, so it's kind of a moot point.

And the problem that if the PS4 doesn't do well in japan, japanese games won't do well either, it's a snowball rolling thing.

My point is that all three needs to do well, we can't have a market with only 2 manufacturers, or one. Maybe it's one of the reason the japanese market is failing, not enough competitors on the dedicated gaming market since Xbox threw the towel