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Cobretti2 said:
Why do I need hardware with a streamlined windows for? at this point people may as well just buy a PC.

Three things.

Cost: it's free OS and it'd create some healthy competition on the hardware market.

Convenience: it's sill Xbox and it's still feels like console, without worrying about compatibility.  

Freedom: you could actually build it yourself if you think you could do better for less (which goes back to the cost). In fact, that also opens some extra possibilities such as Xbox laptops or potable devices in the future as new hardware doesn't always mean faster, but also less power hungry.