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I don't know if "XBox" would exist if this had taken place.

Nintendo was already fairly far ahead of development of Project: Dolphin (GameCube) at this point, MS probably would've just used that instead of having them start from scratch.

GameCube probably would be different though if this had happened, I think it probably would play DVDs and it would likely have some type of Windows on it (ala Dreamcast). Also it probably would've supported Direct X.

My understanding is the XBox project only got the full greenlight to go ahead once Nintendo turned down MS and they had no alternative but to make their own console.