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I think if MS stopped pursuing a spot in the gaming industry, then I'd simply enjoy the memories I have of them. It's not like the industry would collapse on itself or something. As for where they'd go next, my first thought is a mixture of PC and sony consoles. I don't see many going toward nintendo products to replace their xbox. Most Sony and Nintendo fans would simply go to the next thing that fits their taste as well, if either went out of business or simply stopped pursuing a role in the gaming industry for some reason.