That's honestly what it sounds like. MS going down would be bad, sure, but it wouldn't be the end of the world. Someone else would jump in. And either way, the Era of Sony/Nintendo wasn't bad, neither was the PS2 era when Sony dominated. I don't see the issue. MS made a product people don't want, too bad, that's how the market works (same for Nintendo).
Why would anyone else jump into a shrinking market? If MS leaves no one will take thier place unless you count under powered apple tv/android consoles jumping in. The CEO is feeling pressure to ditch the xbone already so this is not good for gamers. Great for fan boys sure but horrible for those who love the hobbie. We could see the market shrunk almost in half in 1 generation.