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MS couldnt care less what happens in the console race alone.

They are already succeding in what they are trying to accomplish and that is provide a one in all media service that plays movies, TV, games, Radio...etc.

If an xbox product can replace your cable company, phone company, play radio, stream movies and it plays games on top of that...MS is winner. If Ms wanted to deal with games only, they would have stayed on the PC.

Stopping Sony from console dominance and Apple from even entering the market is a bonus for MS.