The Xbox was Microsoft making a move into the living room. The One was them trying to double down on the TV aspect of it, but it was far too late to the dance when most TVs have built in features, and you can get stuff like Chromecasts for next to nothing.
I don't think this is them merging PC and Console, I think this is them retreating. The fight for the living room is lost, for the foreseeable future.
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