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Here's what it boils down to. Xbox as a brand stopped being about games quite a while back.
We've had indications fora while, but when Zune was discontinued and succeeded by "Xbox Music", "Xbox Smartglass" and "Xbox Video".
Giving it some thought, it's likely that Microsoft's ultimate goal with the Xbox One is to rely on it much more as a core part of the company and it's business model, whereas the Xbox 360 was ultimately a mixed bag in terms of profit, especially thanks to the RRoD.
No matter how good it is, Windows Phone 8 is not going to win out against either the Apple or Android for the foreseeable future.
The same seems likely for the Surface in the tablet market, despite it looking brilliant (but bloody expensive).
The internet as well is largely dominated by Google. How many people actually use Bing?
One thing that neither Apple or Google have though is the living room.
They don't even really have a start in it.
And that's where this super media hub comes in, first come and first served.
If Microsoft nail it, they will no longer be so dependant on the Windows/Office software aspects.