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Azzanation said:

This also falls on the individuals who disagree with that statement, if you cannot trust the company you invest in than you are investing in the wrong company. 

Well this goes for any company. Without competition, they may be more likely to steer down the wrong path.

I don't think Xbox needs to outsell Playstation or Nintendo to be successful.
While I do agree that 3 consoles, from my personal point of view, always felt like at least one too many. But for others it's not an issue.

I think it's too early to determine if MS will drop out of the hardware business next gen since that's likely 5+ years away.
I think they'll try to continue even if they don't set any sales records or don't make too much money from it vs going full service mode, because there will be players who prefer their controlers, etc.