Apples and Oranges comparison. Cinema vs Home Media are like concerts vs albums, live market is enterily different of music market 

Subscription services is replacing others medias, Home Media and Cable TV

If anything going to cinema is a leisure activity that competes with going to to beach or going to the park 

That's said, box office has been stale in North America and Europe for quite some time. Average price increasing is mitigating this, but when we talk about audience numbers it's a clear downward trend that started well before Netflix become a thing. Emergent markets like LATAM and East Asia are pushing global box office, but there will be a saturation point sometime 

I'm sure gaming industry will be the same. Japan and Europe are already buying less consoles. USA and emergent markets may cover this decrease this gen, but won't be like this forever, not when big players like China are mostly going to PC gaming 

Hardware's will die, and we all will be alive when it's happens. It won't die fast though, heck physical media are still 15 to 20% of music industry after 20 years of steady decline, hardware will be the same. We are in the earliest stages of decline, but by the end of PS5 life it will become so outward that nobody will deny it anymore  

More likely to be app on TV that you just sync your controller. Isn't XCloud already going that direction?

Exactly why would you need a damn dock and a phone that sounds atrocious. Just have an app on a phone for smart TVs and some sort of Google cast for normal TVs. Xcloud should in the end be able to be supported on tablets, smart TVs, Laptops, PCs, everywhere. But I still doubt even Xbox will stop selling the box altogether. It might sell less than it does now and the price might become more premium than it is now because it'll be more of a rarer item with more power but that's it. There will always be some space for local gaming. Flip phones still exist and even brick phones still exist and wall clocks and pocket watches still exist.

Why pay 400-600$ for a console, when you can instead just buy a 1000$ phone, and unlimited data caps internet service for $$$ and game via the cloud?

I dont know, so far consoles still offer alot of bang for the buck.
Alot of people, are perfectly fine with their phones just working as phones, and would rather have a dedicated device for gameing to do so on.
Consoles will stick around, and arnt going anywhere (I hope).

Plus theres the collectors aspect to it,.... like nothing wrong with haveing a shelf or two, with games on it.
Its just differnt, if its all digital, or not even that (in the cloud, instead).

Also currently streaming cannot provide the same user experiance as physical hardware.
Theres less picture quality and more input lag, than on physical hardware.

I know, it seems like a small thing.
But the differnce between playing something like Mario on a SNES vs a emulation of it on PC, and even small differnce in input lag are very noticeable.
Some games that stuff really does matter.

Yep the dock doesn't make any sense at all, at most as you said you would just mirror the smartphone screen on the TV or MS would sell a 50USD HW to connect to older TVs to play Xcloud.

It’s just another option.  Not saying it would be the only option.  I was responding to somebody that was saying that it would be too difficult for a lot of people to bother figuring out.  I’m not sure how a dock would be atrocious, it would be just like putting your phone on your charger.  If it’s like the switch, it would automatically turn your tv on and switch to the correct input, nothing to figure out.

there are definitely issues with trying to rely on smart tv apps.  I have a smart tv, for one, it rarely updates its apps.  I’m guessing something like Xcloud would require lots of updates.  Two, not everybody has a smart tv and would need an extra device anyways like you said.  

Basically, nothing wrong with more options...

if it keeps selling 100 mil why will it die though?
i dont see the logic,

if its like brokebox selling less than fiftea and then yeah dead in the water ok!

It depends on selling the hardware and accessories at a loss or not, and how much you lose. PlayStation 3 sold 87.4 million units, and still managed to wipe out the combined profits of the PlayStation and PlayStation 2. Stop and think of that. That's crazy.

PS5 will surely not be sold at as much of a loss as the PS3 was, but it's going to have to be sold at a loss to be affordable. The final PlayStation (PS6 or PS7) could still sell 80-100 million units and still not be considered worth continuing if Sony is losing too much money.

Selling consoles at a loss means getting more tech for your dollar.  All the money will be made back through game sales. and subscriptions, and through the console itself when manufacturing costs goes down.  Phones don't have room for fans, or any type of on-board cooling.  Whatever space you can use for gaming in a phone, you'd get better hardware on a console, that's much larger than a phone, and has room for fans/heat sinks, etc.

it's so much easier to just turn on your console, and have things work.  There's ease of use and exclusive games, and games released on console don't have to take wide varieties of PC specs into consideration.