Alternate history: Microsoft never joins the console race

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JRPGfan said:

curl-6 said:

Let's wind back the clock 23 years. The 6th generation of consoles is underway. The PS2 is off to a flying start, and the Gamecube has just released. 

In this timeline, however, something has changed; Microsoft decides not to the join the console market. Xbox never happens.

How do you think the following years and generations up to the present day play out in this scenario; what would gaming look like without Xbox?

I think the "market" stays roughly the same size, however Sony and Nintendo are both slightly bigger.
Halo gets bought by apple (as was the plan, until MS swooped in last minuet and bought it).

Maybe Apple would be slightly more gaming focused than it is today?
Maybe the size increase of Playstation and Nintendo, leads to more and differnt types of games, being made in that time frame?

PS3 wouldn't have lost Sony as much money (or they recouped quicker).
How does that effect PS4? PS5?   Would the console market be as service focused as it is now? would you still be paying for online?
(xbox started and PS followed right?)  Would there be as many Games as a Service? I feel like xbox is partly responsible for hypeing that stuff up.

Would Nintendo have chosen to go "blue ocean strat" if they had 1 less competitor on the market? and got to keep rare?
Ei. would nintendo still be doing a main console + handheld strat today?

Nintendo choosing blue ocean was a result of two things, with Microsoft having nothing to do with them: increasing cost of game development and Sony entering the handheld market.