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I agree with everything but the first and last point. I think Microsoft are still going to make hardware for their "console" OS. But I agree with everything else.

What they are doing is making a steam machine without the stupid move the steam machines did, which was confusing the consumer with to many hardware options. They make the hardware, they make the software. If you like PC, your experience doesn't change. If you like consoles, your experience barely changes. You're still buying another Xbox. It will just have access to EVERYTHING on a PC that runs off windows because it won't be a separate platform like it is now.