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pbroy said:

Microsoft could go a different approach next gen. They could become strictly an OS company and license their Xbox OS to hardware manufacturers or put their system on a SOC and sell the SOC to be integrated. We could be seeing multimedia boxes made by Samsung, LG, Panasonic, Toshiba, HP, Dell, Asus, HTC, Nokia. Maybe even TVs with Xbox built in.

Microsoft had been trying to do this with both the Xbox and Xbox 360 with no takers.  I think their decision to become a hardware and services company meant that they decided to stop trying to get hardware manufacturers to create products around their software, and just start creating hardware products that use their software.