I think people have an overly negative views on the current state of gaming scene. My games now cost less than they when I had the Sega Genesis. Competition has brought a lot to the scene, even the freemium model has some perks. I am not spending my money on in-game purchases yet the selection of games I want to play is only growing.
I don't disagree that there has been lots of mismanagement and poor decision making for decades, but you need to keep in mind that Microsoft sucks as a competitor in the consumers space, not just with consoles. Browsers, search engines, smartphones, headphones, laptops, app stores, smart watches, tablets and needless to add, consoles and gaming (lol). I wouldn't use MS as an example of how competition isn't good for the consumer because MS makes terrible third-grade products and has no idea how to compete in the consumer space without buying companies like ABK or coming up with subsidised business ideas like GP (which they seem to be walking away from).
I am not sure what to make of the unaddressed rumours as they seem to contradict each other, they don't seem to be existing the hardware business and only taking advantage of the current Xbox crisis like any true capitalist would. Wait and see for now.