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Machiavellian said:

It really just makes sense for MS to try to leverage their game division to publish for both of their ecosystems to maximize profits and increase adoption of their services across all of their platforms.  This in no way means they will suddenly abandon the Console market if anything, they are probably even more committed because they still need a piece of hardware underneath the TV.  The thing is, they will have probably multiple different ways to access their games and services by providing something like a Steambox that streams from your PC or the internet using Azure as their back end.  They will also have another console for their next generation because they want that market as well.  

Exactly, MS are unlikely to abandon Xbox. Doing so would be the end of a piece of a very profitable market and  the end of XBL subs. They are having a bad gen and still making money through Xbox.

MS will launch into next gen swinging and you can bet your top dollar on it.