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nitekrawler1285 said:

I am very aware that is why they got into the console business.  

I realize that they thought it was a huge threat in 1995 when Playstation was breaking new ground.  Generations later and billions of dollars spent and seeing the "growth" of the segment I don't think video game console sell well enough to replace the money they make selling windows and office in the PC market(at least not with loss leading tactics).  I also don't see consoles fitting well with the most common pc use cases be that getting work done or the more casual use cases(far better on actual pc, tablet or mobile)

With Office on mobiles I don't see the need for them to spend so much money on making devices themselves.  Other manufacturers are willing to do it for them. Just continue to make sure their enterprise software excellent and popular so no matter the OS you want to use Office to get the work done.  I think MS should look at IBM and others and be a software and services company.  I mostly feel this way because so far it seems all of their hardware responses to competitors have been very expensive failures.  

You argument would make sense if Xbox One was a game console. However, even MS presents it as an entertainment console. Their entire branding of Xbox since Kinect has been focused more and more on presenting Xbox brand as an entertianment console that also features the latest gaming.

Their goal is to create the perfect windows-based tv connected device. Thus helping cement Windows with users who will hopefully expand into phones/tablets and of course desire to keep the familiar at office as well.