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Hahaha, I think it's the other way around.

Microsoft designed the Xbox specifically to fight PlayStation, which was trying to attack PC. Without MS interfering, who knows what Sony could have done?
Really, fighting PlayStation IS the only business reason of Xbox's existence.

That, and you're wrong about pc gaming(the online yo're talking about) being on consoles being the reason of survival of console gaming. Console gaming isn't a retarded form of PC gaming! Before this generation, there used to be a big difference between PC and console, and even this generation, the Wii is a console that doesn't have pc gaming blood running through its veins. And to prove my point, the Wii is outselling the pc gaming-consoles.